Evercore ISI analyst Amit Daryanani advises investors to stock up on both Apple and International Business Machines shares ahead of their upcoming reports.
Daryanani on Monday added both Apple and IBM to Evercore’s “Tactical Outperform List,” a roster of names expected to be strong near-term performers.
On Apple, Daryanani notes that the stock has underperformed the S&P 500 by 16 percentage points since the company’s last earnings report in October, and asserts that the stock looks like a “compelling buying opportunity.” Apple stock has come under pressure in recent weeks as analysts ratcheted down sales expectations for the iPhone 14 Pro and Pro Max, due to recent Covid-related production issues in China.
Daryanani sees some risk that December-quarter iPhone sales could still miss estimates, but adds that given the stock’s recent sell-off, “a miss shouldn’t have a material impact on shares” as long as Apple’s guidance suggests the lost sales will be recovered in coming quarters. In particular, he predicts March quarter guidance will be about 5% ahead of current Street consensus estimates, as iPhone sales begin to rebound. He maintains his Outperform rating on Apple stock with a $190 target price.
MacDailyNews Take: From Amit’s lips to Mr. Market’s ears!
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