Apple Down 21% in 2022 - KeyBanc Analyst Remains Bullish

Key points:
Apple shares are down 21% in 2022
However, KeyBanc remains bullish on the stock
The firm raised iPhone revenue estimates

After a decline over the last couple of months, shares of tech giant Apple (NASDAQ: AAPL) have fallen 21% in 2022, as general market sentiment has taken a hit due to headwinds, including soaring inflation, rising interest rates, and more.

However, in a note to investors on Tuesday, KeyBanc analyst Brandon Nispel said the firm remains bullish on Apple, keeping an Overweight rating and $185 price target on the stock.

The analyst raised iPhone revenue estimates, while he said data showed Indexed Spending was +11% month-over-month in September, compared to the three-year average of 0%.

X testing X

WELCOME BONUS - Free Share Bundle When You Invest £50! Get up to £500 cashback for investing with IG.

Invest in 15,000+ shares and ETFs. Open an account now, invest at least £50, and you’ll get a free share bundle worth between £40 and £200. T&Cs apply.

5.0

Open Account Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 68% of retail investor accounts lose money when trading spread bets and CFDs with this provider. You should consider whether you understand how spread bets and CFDs work, and whether you can afford to take the high risk of losing your money.

AAPL Price Chart — Apple Daily Chart – Source: IG

Also Read: Three Day Trading Strategies for Apple Stocks

Nispel added that KeyBanc data continued to demonstrate strength in the fourth quarter finishing at +28% quarter-over-quarter compared to the +24% QoQ average, and he believes the fourth quarter benefited from an extra week of iPhone sales and a mix shift to higher-priced devices. As a result, the analyst thinks the data backs up his above consensus hardware revenue estimates.

Elsewhere, Barclays analyst Tim Long lowered his price target on Apple shares to $155 from $169 on Tuesday, maintaining an Equal-Weight rating on the stock. However, the analyst took a similar stance on revenue, with Barclays seeing a 3% upside to September quarter hardware revenue estimates, even when accounting for 200 basis points of incremental currency headwinds.

Long increased his hardware revenue estimate for the quarter due to a slight iPhone upside and much-improved MacBooks, offsetting Services weakness.

Apple shares are currently trading around the $140 mark.