Deutsche Bank says it’s time to take advantage of the dip at the start of 2022 by loading up on Apple stock, as analyst Sidney Ho raises his price target from $175 to $200.
Brian Sozzi for Yahoo Finance:
“Considering a healthy demand backdrop and Apple’s strong product portfolio across its product lines, we believe the Street estimate for CY22 revenue growth of only +5% (vs. Deutsche Bank estimate of +9%) is too low with the push-out of some revenue from calendar year 2021 already accounting for ~3 percentage points of growth, and we therefore believe there is an upward bias to estimates as we go through the year,” said Deutsche Bank analyst Sidney Ho in a research note on Tuesday.
The push higher in yields has sent Apple shares down about 3% year-to-date, while the tech stock heavy Nasdaq Composite has dropped nearly 6%.
Ho thinks the inflationary environment should be a tailwind to Apple’s stock, not a headwind. “In addition to strong business fundamentals, we think AAPL shares will benefit from a flight to quality in an inflationary environment,” Ho adds.
Technovanguard Note: Apple stock is currently up $0.88 (+0.51%) to $173.07 in pre-market trading.
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[Thanks to Technovanguard Reader “Fred Mertz” for the heads up.]
The post Deutsche Bank: Why Apple is a $200 stock appeared first on Technovanguard.
