Apple pullbacks a buying opportunity – Citi

 
Apple pullbacks a buying opportunity - Citi
© Reuters. Apple (AAPL) pullbacks a buying opportunity – Citi

By Sam Boughedda

Citi analysts maintained a Buy rating and $175 price target on Apple (NASDAQ:AAPL) in a note Wednesday, providing a list of reasons why the tech giant’s shares can trade higher.

Those reasons include the optimism on growth from India, Apple’s iPhone revenues not seeing negative YoY beyond December, service revenues growing as FX headwinds ease and price increases push through, the launch of the newAR/VR headset product category in 2023, regulatory risk remaining a headline risk but there being limited impact on services revenues, buybacks, dividends, the flight to quality, and the long-term possibility of Apple Car.

“After outperforming in 2019-2021, Apple’s shares are largely trading in line with the SP50 (~-20% YTD). Shares have fared better than the large-cap peers (Google, Meta, Netflix, Amazon). Looking ahead, there are several puts and takes for Apple’s products/services given broader macro consumer woes. While the December quarter is constrained by supply (China COVID closures impacting production), we believe demand for Apple’s products and services is likely to remain resilient throughout FY23,” they wrote.

“We do recognize that regulatory risks remain a major overhang on the stock, but we view these as headline risk rather that fundamental risk. Such headlines could provide a near-term stock pullback which we would view as a buying opportunity for Apple shares. Apple’s current market value does not reflect new product category launches. This will change with the launch of the new AR/VR headset in 2023 and foldables in 2024,” the analysts added.

Apple shares are up 2.5% at the time of writing on Wednesday.

Source: investing.com