Citi analysts give five reasons to buy Apple stock despite its target price being going down, according to MarketWatch. The reasonings include the launch of iPhone 14, a shift toward premium models, a $90 billion stock buyback, a potential for more devices-as-a-service, and upcoming new product categories.
While shares are down, Apple will reveal third-quarter results at the end of the month. The MarketWatch article cites that the loss is less than other tech giants like Microsoft, Alphabet, and Meta. Additionally, supply chain troubles and the company’s exit from Russia have hurt Apple’s third quarter.
Introduction of new products will help Apple stock.
Also, back in April it was noted that Apple could do a stock buyback of up to $90 billion. We have yet to have an official announcement, but Citi analyst Jim Suva believes the Cupertino company will also raise its dividend. Upcoming new product categories like the AR/VR headset and the Apple Car have potential to raise Apple’s market value. While both products are likely years away, they continue to remain in the back of investors’ minds.
The article also mentions the potential of Apple moving to a device-as-a-service model. Earlier this year, the Consumer Intelligence Research Partners (CIRP) analyzed the potential of this and stated it could be a logical step for Apple. 9to5Mac has a poll for readers to see if they’d like a device subscription model from Apple. Join the poll and see what others say here.
iPhone 14 to launch soon
Citi analysts also state the upcoming launch of the iPhone 14 in September is a reason to buy Apple stock. However, Wall Street analyst Brian White believes Apple’s flagship device will battle weak consumer spending this fall, despite strong demand.
With a weaker economy and inflationary forces eating into budgets, consumers may be more apprehensive about buying Apple’s upcoming iPhone innovation in the fall, possibly waiting until this economic inferno has passed before making such a purchase, White said in a note to clients.
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