UBS cuts Apple price target, maintains buy rating

UBS analysts have cut their Apple price target from $335 to $290 as they expect iPhone unit sales to drop 16% this year.

UBS Apple price target. Image: Apple logoApple does not report iPhone unit sales.

UBS’ supply chain checks show weak iPhone demand in China for Apple’s fiscal second quarter, noting that Apple’s worldwide retail store closures outside of Greater China will be a headwind, of course.

Despite cutting their Apple price target, UBS maintains a Buy rating on Apple, advising clients that the recent AAPL sell-off has created a buying opportunity.

MacDailyNews Take: Apple’s cash-rich coffers are a testament to AAPL’s surprising strength. Apple may want to rethink their goal of becoming cash neutral over time in the wake of this pandemic as having a mountain of cash has, so far, proven to be quite beneficial amidst the black swam of the COVID-19 pandemic.

6 Comments

  1. As usual, the stock market is leaving AAPL far behind. Microsoft, NVIDIA, and other tech companies are slaughtering Apple in their stock price recovery. Apple shareholders are once again, left holding the bag.

    1. The company receives over 50% of their rev from a consumer device and that device and and a huge purchasing base is China, yes….one would deduce the stock price and futures will go down?

      The other tech companies mentioned don’t fall into the consumer-heavy category, like Apple and consumer spending in the two greatest markets are getting whacked. The “market” doesn’t have some irrational hatred for AAPL….they’re forecasting and with the specific parts in play for AAPL, I’d lower my number as well.

      The “stock market” still calling AAPL a buy should speak to what they really think, vs a temporal drop in share price.

  2. It seems all the estimates from these analysts are “good, honest guesses” at best, or attempts to manipulate stock prices at worst.
    But just to clarify, regardless of their intentions… are they saying this is their estimated price in exactly one year from today?

  3. Apple’s exposure to China is simply too high in all aspects. This is just an unfortunate thing like a hundred-year flood. I don’t think Apple should have been able to anticipate a worldwide virus. Most hardware tech companies have to depend on China for production, but it just so happens Apple depends on China quite a bit for product sales, so this quarter’s revenue loss can’t be helped. It’s disappointing how Apple is falling behind other major tech stocks in value recovery, but Apple always has to prove each quarter that it has significant value. I’m used to this by now and it doesn’t concern me as long as I know Apple is always trying to improve its business. This year started out really well until the Coronavirus happened.

    I’m glad I own Apple stock instead of airline or travel stocks. So, even though Apple has lost a fair amount of value this month, I feel certain the stock will recover if the virus threat lessens. I doubt this virus problem will effect Apple in the long-term. A six-month value loss doesn’t bother me at all as I always look at the whole year or 52-week period.

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