Tech enthusiasts headed to their local Apple Store to try out the Apple Vision Pro. Michael M. Santiago/Getty Images
According to Wedbush, the 12 percent sell-off in Apple shares so far this year represents a buying opportunity for investors.
The company offered five reasons why investors should remain confident in Apple stock.
“We believe there are better days ahead for Apple, even if the China story remains a dark cloud for now,” Wedbush said.
This is a machine translation of an article from our US colleagues at Business Insider. It was automatically translated and checked by a real editor.
Apple shares have struggled in 2024, but there are at least five reasons why investors should remain bullish on the iPhone maker, according to Wedbush analyst Dan Ives. Apple shares have fallen about twelve percent so far this year. The stock fell 3 percent on Tuesday after a research report from Counterpoint said iPhone sales in China fell 24 percent in the first six months of the year.
Ives said his recent trips to Asia confirmed likely weakness in iPhone 15 sales, reflected in additional discounts on the phone. It also doesn’t help that Apple is facing some difficult comparables for iPhone sales in China over the next two quarters.
“Overall, iPhone numbers remain flat for the year, with some very challenging comparables expected from the China region in the March quarter,” Ives said in a statement Tuesday. However, Ives’ continued confidence in Apple is driven by these five factors, the note said.
“Current iPhone estimates for 2024 remain high, estimates for 2025 are conservative” “Demand for an upgrade cycle could be more than 270 million iPhones by iPhone 16” “Services remains rock solid with double-digit growth and a key to rating support.” “AI is finally coming to Apple in the form of new App Store extensions and built into the iPhone 16, based on our work in this area.” “Apple has the strongest with 2.2 billion iOS devices installed base of every company in the world and the next phase of monetization is just around the corner.”
Read too
EU Commission imposes billion-dollar fine on Apple’s music streaming service
“In short, at the moment the data is not rosy for Apple and the headline risk remains in the name. However, in our view, it’s about getting through the next quarter or two and getting to the other side of easier comps, the AI announcement at the Worldwide Developers Conference, the stronger iPhone 16 upgrade cycle, and the monetization opportunity of the gold installed ones base in Cupertino,” Ives said.
“There will be brighter days for Apple, even if the China story currently remains the dark cloud over the name in the near future. Ives reiterated his Outperform rating and his price target of $250 (€230), indicating potential upside of 47 percent compared to the current level.
Read the original article in English here.
Disclaimer: Stocks and other investments generally involve risk. A total loss of the capital invested cannot be ruled out. The articles, data and forecasts published are not a solicitation to buy or sell securities or rights. They also do not replace professional advice.