A leading industry analyst has verified her rating of AAPL stock as ‘obese, reducing the target cost by 9%.
As reported by The Street:
Apple (AAPL) – shares were affirmed overweight by a top industry analyst, Morgan Stanley’s Katy Huberty, who cut her price target 9% as consumer spending weakens and many Apple stores stay closed during the coronavirus pandemic.
Huberty cut her price target to $298 a share from $328. This was her third price-target cut on the Cupertino, Calif., company this year.
Uncertainty in the current market is “significant,” she wrote. And she is cutting her earnings estimates to reflect “a weaker consumer in fiscal years 2020 and 2021.”
Huberty did, however, note that even though “earnings could amaze adversely if social -distancing measures last longer or consumer balance sheets wear away more,” Apple is “ideal placed” to recover prior revenues as well as profits trajectories and returning on the right track.
She has additionally noted that Apple has “industry-leading client retention prices as well as a strong annual report.” She likewise stated that she expects Apple to continue purchasing back $20 billion of shares each quarter, as well as paying around $14 billion in annual dividends.
One of the most current reports suggests that Apple Stores and offices throughout the US may not reopen up until at least May because of the coronavirus pandemic. This discovery, if true, might have a more profound effect on Apple’s income. Only Apple’s 42 stores in Greater China are presently open.