Over the last few months, Apple (AAPL) plummeted from $195 to about $165.
Unfortunately, a lot of that has to do with China’s crackdown on iPhones, and brutal competition from the country’s rivals.
According to Mobile World Live, “Data from Counterpoint Research pointed to a drop in Apple smartphone sales in China during Q1, with a Huawei resurgence in the premium sector a factor. Counterpoint Research stated smartphone sales grew 1.5 per cent, the second consecutive quarter of year-on-year growth. Apple’s market share fell to 15.7 percent from 19.7 percent in Q1 2023.”
However, it appears most of the bad news has been priced in.
Better, after catching strong support, Apple is beginning to pivot higher again. Helping, analysts are bullish, and there are a few key events just around the corner.
Analysts are Bullish on Apple
For one, analysts at Wedbush are maintaining an outperform rating on the stock, with a $250 price target. The firm believes iPhone sales could be strong this year, and that there could be pent-up demand for them, as well. In addition, the firm says service revenues are still strong, and that the company is integrating artificial intelligence into its devices.
Granted, “The Street is bracing for a brutal March quarter and soft June guidance which we believe could be the last few quarters of this growth storm as Apple starts to see a renaissance of growth heading into the September quarter and FY25,” Wedbush said, as quoted by Business Insider. “While some patience is required to navigate this China weakness, we believe the seeds for an Apple growth turnaround are being planted in the field.”
Again, though, a lot of that negativity appears to have been priced in.
Analysts at Bank of America say the stock could soar 36% as it nears the launch of its artificial intelligence-enabled iPhone. The firm also reiterated its buy rating, with a price target of $225, noting that much of the weakness with expected earnings has been priced in.
Upcoming Events Could Push Apple Higher
The company just announced it will hold an event on May 7, “amid reports that it would roll out the long-anticipated revamped versions of iPad Pro and iPad Air next month,” according to Reuters. And three, the company is nearing its Worldwide Developers Conference (WWDC) in June, where it’s expected to unveil new artificial intelligence-enabled products.
With plenty of bullish analysts, nearing events, and a good deal of bad news priced in, Apple could push aggressively higher.
Plus, according to Bank of America, it “expects Apple to increase its capital return to shareholders when the company reports its fiscal second-quarter results. That could come in the form of an increased dividend, an increased stock buyback program, or both.”
