The slowdown in consumer spending and the macroeconomic counterbalance should put pressure on them Apple (AAPL) in the near future, a Wall Street analyst said Tuesday. Apple shares hit an almost yearly low on Monday.
Deutsche Bank analyst Sidney Ho reiterated his buy stance on Apple shares but reduced his price target to 175 from 200.
In today’s afternoon trading, Apple shares rose 0.6% to 132.62. On Monday, it fell 3.8% to 131.88, its lowest since late June 2021. Apple shares are down more than 25% this year.
“Given the macro environment (rising interest rates, slower consumer spending and ongoing geopolitical uncertainty) over the past month, we believe the risk to our estimate is to the downside and we wouldn’t be surprised to hear more about Apple. Reducing orders,” Ho said in a note to customers.
Apple stock rating decline
He noted that Apple has already commented cautiously on the June quarter.
On April 28, Apple warned that supply cuts caused by a Covid-related cutback in China and an industry-wide silicon shortage would reduce its revenue by $4 billion to $8 billion in the June quarter. Exchange rates and the suspension of supplies to Russia during its war with Ukraine are other contradictions.
Investors are cutting Apple’s valuations on macro uncertainty, Ho said.
Elsewhere on Wall Street, JPMorgan analyst Samik Chatterjee reiterated his overweight rating on Apple shares with a 200 price target. Apple’s prospects for the growing business are optimistic. These services include Apple Music, Apple TV+, Apple Fitness+ and Apple Arcade.
According to IBD Stock Checkup, Apple stock has a median IBD rating of 66 out of 99. The composite IBD rating combines five separate proprietary ratings into one user-friendly rating. The best rising stocks have a composite rating of 90 or better.
Follow Patrick Seitz on Twitter at @IBD_PSeitz for more stories on consumer tech, software, and semiconductor stocks.
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