We dont expect a 5g super cycle and oppose independent service valuations or that apple is a strong company that can benefit from the epidemic, Wolfe research analyst Jeff Kvaal wrote He set a target price of $315 for Apple stock.
Apples share price fell 4% on Friday and recovered most of its lost ground, closing down 0.8%. Apple shares have so far risen more than 60 per cent from their March lows; Wolfe believes Apple fundamentals cannot support the trend that has occurred in the past few months.
Apples recent gains are largely related to the upcoming 5g iPhone. Wolfe research played down the potential benefits of the product. We believe that the iPhone 12 orders on Apples supply chain are roughly the same as last years iPhone 11 orders, the company wrote The company also said iPhone sales had slowed sharply during the 2008 recession, a trend that suggests similar weakness in the current economic environment.
Its rare to be bearish on Apple shares, with only four of the companies tracked by the media suggesting selling Apple shares. In contrast, 29 companies rated Apples stock as buy and 9 as neutral.
However, wolf is not the only company to question Apples recent gains. Earlier this month, Deutsche Bank admitted that it was surprised by the speed and magnitude of the rebound in Apples share price, adding that the move made us nervous.. Analysts average target price for Apple shares is close to $373. While thats up from the $305 target price at the end of April, its only slightly up 1% from the current share price.
Apple is due to announce its third quarter results on July 30 local time. (Chen Chen)
Source of this article: Zhang Zutao, responsible editor of Netease science and Technology Report_ NT5054