Apple’s better-than-expected Q322 earnings report helped assuage investors’ worries about how a slowdown in consumer demand would impact the compnay. As sentiment on Apple turns positive, it may be time to buy the stock, Citi analysts say.
Sabrina Escobar for Barron’s:
“We would characterize this quarter as a major bullish statement on iPhone demand and Cupertino’s [the location of Apple’s main office] ability to navigate a supply chain shortage in an impressive performance,” wrote Wedbush analyst Daniel Ives on Friday.
Citi analyst Jim Suva agreed, saying he continued to see several positive drivers for Apple’s products and services in the months ahead, even though macro challenges will persist.
Suva outlined five reasons to buy the stock.
1. iPhone 14
2. Expansion of Services Segment
3. New Product Launches [AR/VR headset and “Apple Car” by 2025]
4. Demand Shift Toward Premium Products
5. Stock Buyback Program will keep boosting the shares in the long run