Apple Stock: Where Wall Street Currently Stands
By my count, eleven major sell-side analysts published reports on Apple in November. Today, I look at a few of them to gauge where Wall Street stand on the Cupertino company’s stock.
Still an overwhelming buy
First, let’s look at a higher-level picture of what analysts think of Apple as an investment opportunity at current levels.
The chart below shows that Wall Street experts remain overwhelmingly bullish. Nearly 20 out of 25 consider the stock a “buy”, and bear have become a rarity.
What bears say
Speaking of bears, let’s start with Goldman Sachs’ Rod Hall. As far as I know, he has been the only top analyst to lower his price target on Apple in the past couple of weeks, down $5 to $75 per share for a total of 35% downside risk.
Mr. Hall believes that Apple “expects just single digit growth for iPhone in Q1, which he said would be below the high 20s percentage growth needed to keep up with last year's Q4 plus Q1 cycle”. He continues to believe in the “weaker 5G iPhone cycle rather than the 'Super Cycle' expected by consensus”.
What bulls say
The bullish camp, however, is much better represented by Wall Street banks.
Oppenheimer’s Andrew Uerkwitz seems excited about the M1 chip that powers the couple of Mac models that Apple has recently announced. The analyst expects “M1-equipped Mac products to drastically outperform the predecessors”, which should bode well for future sales of Apple’s personal computers.
Morgan Stanley’s Katy Huberty seems to be in the same boat. She says that “Apple refreshed products that account for 80% of revenue and now has the broadest and most updated product portfolio in the company's history”.
Read more from the Apple Maven:
(Disclaimers: the author may be long one or more stocks mentioned in this report. Also, the article may contain affiliate links. These partnerships do not influence editorial content. Thanks for supporting The Apple Maven)