Major analysts: Apple will weather the latest tariff threat, so buy the pullback

Michael Bloom reports for CNBC:

While Wall Street analysts are scrambling to assess the fallout of the latest in the U.S.-China trade battle, Apple is once again caught in the crossfire… A fear of further trade escalation sent chipmakers, retailers, and Apple lower on Monday. Since last Thursday’s announcement, shares of the tech giant are down 9%.

“Do you pass along the tariff in the form of a price hike or do you eat it or ultimately, some combination of both,” Bernstein analyst Toni Sacconaghi said on CNBC’s Squawk Alley on Monday… “We believe Apple is more likely to absorb all the tariff impact and not raise prices on iPhone shipments and other hardware devices into the US, which we estimate will lead to a ~300 bps headwind to iPhone margins,” J.P. Morgan analysts said.

Analysts from Bank of America said whatever Apple decides will be “manageable” and noted it was a good entry point for investors. “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 analyst said.

MacDailyNews Take: Sometimes gifts come near the end of December and sometimes in the beginning of August. 🙂