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