Apple rises even as Morgan Stanley, UBS tweak estimates on China-related iPhone issues - Seeking Alpha

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Apple (NASDAQ:AAPL) shares roseate connected Tuesday adjacent arsenic concern firms Morgan Stanley and UBS tweaked estimates related to the interaction from China's COVID-19 lockdown successful Zhengzhou, with Morgan Stanley saying an accidental to "buy the dip" has emerged.

Morgan Stanley expert Erik Woodring lowered his fiscal 2023 gross and net per stock estimates by 0.3% and 0.5% to $407.7B and $6.15, noting that portion the concern successful the populous Chinese metropolis is "fluid," it's apt a deferral not a request destruction.

"...We judge this concern equates to much of a deferral of iPhone request than a demolition of demand, which does not alteration our [overweight] thesis," Woodring wrote successful a enactment to clients. "As a result, we would beryllium methodical buyers of the banal arsenic it approaches 20x P/E – astir 6.5x turns little than its caller highest successful August 2022 and in-line with its trailing 5 twelvemonth average."

Apple (AAPL) shares roseate fractionally successful premarket trading connected Tuesday aft the tech elephantine closed higher connected Monday and erased losses tied to the announcement, made precocious connected Sunday.

UBS expert David Vogt lowered his first-quarter gross and net per stock estimates by 2% and 3%, respectively, portion besides cutting his iPhone portion estimation for the December 4th to 83M, down from 86.5M.

He besides noted that hold times for the iPhone 14 Pro and iPhone 14 Pro Max person gone up successful 30 countries, including successful the U.S. - 28 days, up from 25 past week and 19 2 weeks agone - and China - 26 days, up from 24 days a week agone and 18 days 2 weeks ago.

"While the summation successful hold times are not perfect from a user position arsenic transportation dates widen beyond Black Friday, we judge the interaction is measured successful the debased azygous digits," Vogt wrote.

The lockdown successful Zhengzhou is slated to expire November 9 astatine noon, but Bloomberg reported that COVID-19 cases person continued to emergence successful the city, raising the prospects for a imaginable hold of the lockdown.