Apple stock doesn't scare this analyst despite global slowdown - Yahoo Finance

Even mighty Apple hasn't been capable to flight the black spread that stocks person been sucked into successful caller months.

Apple banal has shed astir 22% twelvemonth to date, under-performing the Dow Jones Industrial Average's 19.5% decline.

The unit connected Apple's banal — which comes contempt an awesome currency presumption and sturdy recurring gross watercourse via assorted services — reflects capitalist interest astir the planetary economical slowdown that reportedly led Apple to chopped accumulation connected immoderate models from its caller iPhone suite.

"Clearly this antagonistic quality successful airy of an already shaky macro and jittery marketplace volition nonstop shockwaves crossed the Street with investors acrophobic this is different footwear to driblet successful this acheronian marketplace with aureate kid Apple beforehand and center," Wedbush expert Dan Ives said of the reported iPhone accumulation cuts.

All that said, Citi expert Jim Suva is sticking with Apple's banal into the company's Oct. 27 net contempt the rising angst.

"We are not frightened of Apple's banal contempt Halloween and capitalist fears," Suva bluntly said successful a caller lawsuit note.

Here's much down Suva's blistery instrumentality connected Apple:

• Rating: Buy (reiteration)

• Price Target: $185

• Stock Price Move Assumed: +33%

Suva is looking beyond a perchance mixed 4th from Apple and locking successful connected respective cardinal longer-term drivers, including the imaginable merchandise of a foldable iPhone successful 2023.

"1) Checks suggest iPhone 14 physique is inactive connected way for 2H expectations of ~90 cardinal units, and we expect a foldable telephone successful 2023; 2) Mix displacement continues to skew distant from lower-priced Android phones towards much mid-end and premium pricing products; 3) A ~$90 cardinal (~4% of existent marketplace cap) banal buyback, which lends enactment to shares; 4) Sticky services revenues and imaginable for much devices-as-a-service offering driving margins higher; and 5) New merchandise class launches specified arsenic AR/VR headsets and Apple Car successful 2025+, not presently reflected successful existent estimates/market cap."

But astir that 4th from Apple acceptable to beryllium reported connected October 27...

"We enactment FX continues to beryllium a important headwind, and we expect these to beryllium worse than 600 ground points guided, hence our numbers for the Sept 4th are beneath Street. We expect FX to beryllium partially offset with easing proviso constraints amended than initially expected. ... A much concerning metric is the twelvemonth implicit twelvemonth diminution successful App Store revenues, which fell by 2% based connected Sensor Tower data. Further, broader weakness connected advertizing is apt to measurement in, but different services (iCloud, AppleCare) volition apt offset the decline, arsenic we inactive expect twelvemonth implicit twelvemonth maturation successful full for services. We expect the absorption to beryllium connected Services spending from a increasing installed base, coupled with spending connected iCloud, AppleCare, and Apple’s ain integer media assets. While our estimates are beneath consensus, we enactment buy-side expectations person mostly been trimmed."

Other Wall Street analysts look to beryllium sticking with Apple's stock, too. Several person travel retired affirmative connected Apple successful caller weeks.

• Evercore ISI's Amit Daryanani: "Demand has remained beardown and is successful stark opposition to caller concerns astir a slowdown. Our appraisal remains – that portion units volition beryllium unchangeable to somewhat up, the existent communicative present is that mean selling prices volition beryllium up precocious azygous digits successful 2nd half, enabling upside to not conscionable the September quarter, but apt December quarter."

• Piper Sandler's Harsh Kumar: "Both the 87% iPhone ownership and 88% volition to acquisition an iPhone metrics are adjacent grounds highs for our survey. We judge the elevated penetration and volition are important fixed the mature premium smartphone market. Additionally, these trends are encouraging arsenic the institution continues to present caller iPhones, which could supply a important merchandise rhythm refresh. We deliberation these affirmative trends tin besides beryllium a catalyst for further services maturation arsenic well, arsenic the instal basal for Apple hardware continues to grow."

Brian Sozzi is an editor-at-large and anchor astatine Yahoo Finance. Follow Sozzi connected Twitter @BrianSozzi and connected LinkedIn.

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