Deutsche Bank analyst Jeriel Ong says it’s time to buy Apple stock. Ong on Tuesday upped his rating on Apple from Hold to “Buy,” while lowering his price target on the stock from $295 to $270.
With the recent downturn, Ong has become more comfortable with the stock price.
Ong concedes that there are risks, including Apple’s ongoing retail store closures, supply chain issues and weaker demand as a result from the global coronavirus pandemic—but he considers all of those risks to be short-term in nature.
Ong thinks the coming 5G iPhone cycle will drive strong unit growth, and he expects further strong growth for AirPods. He sees the services segment benefiting from the 1.5 billion+ active installed base of Apple devices. And he thinks gross margins will have an upward bias as a shift to services continues.
MacDailyNews Take: So far, amidst the COVID-19 rollercoaster ride (which surely hasn’t ended yet), Apple’s low was $212.61 on March 23, 2020, just two days ago. Today’s AAPL high, so far, stands at $258.00. Hang on tight, Apple shareholders!
The biggest econ, with the greatest consumer base in the world, that has supposedly not yet felt the sharpest/deepest effect of the V, and this dingleberry says it’s time to buy AAPL. I appreciate the “vote” of hope, but….
Then I also read, the 2nd most populated country in the world’s iPh production gets shut down for 21 days (much more sensible than the 1st Apple Store shut down of 12 days)…and this is no relevant factor either.
This guy is also very talented at catching falling knives, I guess.
I should have added, he who knows we’ve hit the bottom is quite prescient…or reaching–like Ong.
It’s worth noting….
Great Depression had extreme rallies after gov action (+46% Nov 1930 to April 1931, +25% Dec 1930 to Feb 1931) before new lows
In 2008 we had a +18% rally in Oct to Nov before new lows.
I know it’s not the early 1930’s, nor ’08, but we’re experiencing something very much like both. I’d say, it’s worse/bigger than the ’08 crash and outside of the gains coming from the stimulus, there are A LOT of other elements saying, the stormy season hasn’t passed.
Apple is falling behind in the “time to buy” race. Tesla and Boeing are already sucking up investor’s cash hoard. No stimulus cash for Apple is forthcoming.
Boo!
Down it goes again…
In January 2019 (one year ago), AAPL stock could be bought at the low price of $148 . . . I don’t recall what ‘catastrophic’ event occurred at that time to lower the stock, but it’s evidence that the stock can go below $200. So any Wall Street guy claiming $255 (today’s price) is a great deal is fishing for some non-professionals (you and I) to pump some money into the market.
Depends on your timeline. If you’re a trader, good luck, I have no advice for you other than to hang on to your day job (if Covid-19 hasn’t wiped it out). If you’re an investor with a multi-year timeline, it’s probably not a bad time to get in. Personally, I picked up a significant (for me) number of shares last week around the $220 level, from a buy order I had put in just a few days earlier. Those extra shares are looking pretty good for me right now, but if the price drops back or falls below, I won’t be selling them. I remain overall optimistic, and I think a return to $300 within the next year is not impossible. Last year’s 86% rise in the share price has provided a very welcome cushion for this year’s drop. Meanwhile, I continue to DRIP my dividends into more AAPL stock, which has been a winning strategy for me so far. (And I’m hoping that Apple will change its focus from buybacks to dividends.) That’s just my story. Slow and steady. Your needs are likely different.
Correction. That was Monday. Just seems like a week ago …