Bank of America lowered its price target on Apple (AAPL) - Get Report from $320 to $300 on Thursday owing to the impact of various country lockdowns forcing Apple to close retail stores outside Greater China.
The company’s base case calls for 6% lower iPhone shipments globally in 2020, based on estimates for when each country’s lockdowns are expected to be over, and a bear case of a decline of 13% lower iPhone shipments.
“Clearly this presents a [near-term] headwind,” wrote analyst Wamsi Mohan.
Mohan nevertheless reiterated his buy rating on Apple based on its steady performance despite global economic volatility and its large cash balance. which affords it many options. Mohan also expects a 5G upgrade cycle to benefit Apple, although he acknowledgedly that there have been reports of a potential delay in the launch of the 5G iPhone.
Apple shares were rising 2.2% to $250.87 on an overall strong day for the markets.