On Tuesday, Apple’s (NASDAQ: AAPL) stock price target was cut to $175 from $177 by Morgan Stanley analyst Erik Woodring in a research note.
The analyst kept an Overweight rating on the shares after Apple said the renewal of Covid-19 restrictions at Hon Hai’s primary Zhengzhou, China facility is negatively affecting iPhone 14 Pro and Pro Max production.
However, Woodring said the iPhone 14 Pro and Pro Max channel inventory are below the target range, and lead times have remained robust cycle-to-date. The analyst added that this is “a supply problem, not a demand problem,” and as a result, he views this as an “opportunity to ‘buy the dip.'” However, Woodring stated that tracking the fluid iPhone production situation “remains key.”
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Elsewhere on Tuesday, UBS analyst David Vogt lowered the firm’s price target on Apple to $180 from $185, maintaining a Buy rating on the shares. Vogt said in a research note that UBS Evidence Lab data that tracks iPhone availability across 30 countries shows that wait times across the majority of markets, including the US, ticked higher for the second straight week, and the findings are consistent with the warning that Covid lockdowns in a Foxconn facility in China are impacting production.
UBS sees delivery dates extending beyond Black Friday, although the impact is still estimated to be in the low single digits.
Apple shares are down over 21% in 2022, closing Tuesday’s session at +0.42%.