“Investors should buy Apple stock on the big dip, according to D.A. Davidson,” Tae Kim reports for Barron’s. “The firm’s analyst Tom Forte reaffirmed his Buy rating and $280 price target for smartphone maker’s shares, citing its inexpensive valuation.”
We believe the near-term challenges, including lower unit sales in emerging markets, are more than priced into shares. In fact, as Apple is able to further show its ability in mitigating tariff risks, we think the shares at current levels provide an attractive buying opportunity. — D.A. Davidson analyst Tom Forte
“The analyst noted even in a bad scenario where the trade conflict between the U.S. and China escalates, Apple can move its production outside the Asian country,” Kim reports. “He also said the company may increase its stock buyback plans and raise its dividend.”
Read more in the full article here.
MacDailyNews Take: We look forward to Apple’s holiday quarter earnings report (fiscal Q119) early next year.
One would think Apple won’t go much lower than it already has, so like most tech stocks it would be a buy. However, we don’t know how Wall Street is going to take to Apple’s change in transparency regarding unit sales in the short-term. Apple could be the only tech stock stuck in the mud just out of big investor spite. Those big hedge fund managers are seriously retarded when it comes to dealing with Apple.
I’m willing to bet the other FANG stocks are going to rise in value faster than Apple, especially Amazon. All WS ever talks about is AWS and its unlimited growth potential. Even Apple’s growing services won’t compare to it, as far as WS is concerned. There are a number of financial geniuses who said Apple threw away billions of dollars on share buybacks, so think if all that money Apple had used to build a cloud business. It might have been untouchable and the WS jackasses would have to keep their mouths shut about Apple being doomed.
Until the fascist sociopath is removed from the White House, the market will remain volatile.
Oh, drat: i missed one of the “pump” attempt from MDN.
Once again kids:
“Except that the Fundamentals haven’t changed (risk of China tariffs). As such, there’s no reason to expect a price recovery yet.”