Apple Challenges ‘Create Long-Term Buying Opportunity’

Apple (NASDAQ: AAPL) shares are down more than 30% in the last 12 months, in part due to production headwinds, but Tigress Financial analyst Ivan Feinseth believes the challenges “create a long-term buying opportunity” for the stock.

The analyst reiterated a Strong Buy rating and $210 price target on Apple shares in a note to investors Wednesday. Premarket Thursday, the stock has edged 0.3% below Wednesday's $126.36 close.

Feinseth added that the tech giant's increasing ecosystem, massive installed user base, and growing Services revenue will “continue to drive accelerating business performance trends, and greater shareholder value creation.”

“Production headwinds will lead to a decline in Q1 revenue,” wrote Feinseth. However, he believes overall, Apple's “full-year 2023 business performance trends will continue to show a solid and resilient business model driven by the strength of its ecosystem, unmatched customer loyalty, record sales levels across almost all product lines, and an active installed base of devices and paid subscribers at an all-time high.”

Meanwhile, Wedbush analyst Daniel Ives lowered the firm's price target on Apple to $175 from $200 on Wednesday.

While Ives kept an Outperform rating on the stock, he said that with the fears of a softer holiday December quarter around the corner, the Street continues to sell off Apple shares in an unabated fashion with worries around an uncertain 2023 ahead.

Wedbush's Asia supply chain checks are clearly mixed heading into the next few quarters, noted Ives, with Apple appearing to be trimming back some orders around iPads, Macs, and AirPods over the coming quarters to reflect a softer consumer backdrop. However, he added that the core iPhone 14 Pro demand appears to be more stable than feared, and the overall demand environment is more resilient than the Street is anticipating.

Even though Apple is facing various supply chain headwinds, it is still one of our stocks to watch in 2023.