Apple’s earnings face a “manageable” hit from the newly proposed tariffs, and Thursday’s sell-off makes the stock an even more attractive buy for investors, Bank of America Merrill Lynch said in a note Friday.
Bank of America estimated that the impact of the tariffs will shake out to a drop of 50 cents to 75 cents per share in annualized earnings for Apple.
“In the broader context of the tailwinds that AAPL has we view this as a relatively small amount over the next several quarters and would use the pullback as an especially attractive opportunity to buy shares of Apple,” the firm said.
MacDailyNews Take: The tariffs are temporary, not permanent; a means to an end.