Citi analyst on Apple: 'We like the stock here at these levels' - Yahoo Finance

After a 12% rout successful December, Apple's banal valuation looks precise compelling, contends Citi expert Jim Suva.

"We judge that request volition beryllium acceptable up for a much stronger 2023," Suva said connected Yahoo Finance Live (video above). "We similar the banal present astatine these levels."

Suva has a $175 terms people connected Apple, which is astir 35% higher than the stock's existent levels. The analyst's upbeat telephone connected Apple reflects his optimism connected new AR/VR glasses dropping successful 2023, a caller propulsion into India, and a stepped-up gait of stock repurchases and dividends.

"Apple has been gathering retired that [AR/VR] app ecosystem, truthful that's wherefore we spot present the hardware coming retired aboriginal adjacent twelvemonth arsenic a positive," Suva added.

To beryllium sure, Apple's banal had a challenging clip for overmuch of 2022 — particularly successful the last stages of the year.

Shares of the tech elephantine person declined astir 27% twelvemonth to day contempt Apple's estimation arsenic a safe-haven concern with a formidable equilibrium expanse flush with currency and a dependable watercourse of repeatable services income.

But conscionable similar different ample companies, the volatile planetary economical backdrop has deed Apple successful the signifier of slowing iPhone and accessory income arsenic good arsenic production delays retired of COVID-stricken China.

The outer crosscurrents person sent astir of Suva's peers connected the Street backmost to the drafting committee with respect to their fiscal estimates for Apple.

"We are again moderating our expectations for the Dec-Q (F1Q23) connected the backmost of the interaction of the caller proviso concatenation challenges faced by Apple successful narration to operations astatine Hon Hai’s assembly installation successful Zhengzhou, China," JPMorgan tech expert Samik Chatterjee said successful a caller lawsuit note.

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

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