Apple Inventory Cannot Keep away from Financial Slowdown, Analyst Warns
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Monness Crespi Hardt analyst Brian White lowered his earnings forecasts for Apple in a analysis be aware on Monday.
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Situations within the tech sector are deteriorating, as a slowdown in shopper spending accelerates and spreads to companies. In an atmosphere as poisonous as this one, not even
Apple
is immune.
That’s the level Monness Crespi Hardt analyst Brian White made in a cautious be aware on Monday concerning the outlook for Apple (ticker: AAPL). Whereas he maintained a Purchase ranking on Apple shares, White lower his goal for the inventory value to $174 from $199, trimmed his forecast for earnings, and warned that there are hazards forward for the corporate in coming quarters.
Apple inventory was off 1.2% to $145.24 on Monday morning. whereas the
Nasdaq Composite
was down 1.9%.
White stated that whereas Apple’s portfolio has by no means been stronger, “the financial system seems to be in recession, regulatory headwinds persist, fairness markets are in turmoil and the geopolitical panorama is daunting,” evaluating the state of affairs with Apple inventory to the traditional 1974 catastrophe film The Towering Inferno.
Within the movie, whose solid consists of Paul Newman, Steve McQueen, Fred Astaire, and O.J. Simpson, he stated, the characters suppose the accident will be contained, and that disaster will be averted, however change into incorrect. “We worry it is going to take a deluge of extraordinary forces to place out this blaze and keep away from additional destruction,” White wrote.
White famous that the pandemic performed out positively for Apple, forcing individuals to work at home, a pattern that drove up demand for Macs and iPads, whereas additionally spurring demand for Apple’s streaming-media providers. And he stated it’s no shock that the reopening of the financial system has moderated shopper demand.
Nonetheless, he stated, “different sinister headwinds have since emerged,” together with a pointy downturn within the financial system, inflation, and a “precarious” geopolitical atmosphere. He trimmed his estimates for the June quarter, the September 2022 fiscal 12 months, and monetary 2023.
“Ultimately,” he writes, “we count on this financial blaze will curtail Apple’s progress.”
Write to Eric J. Savitz at eric.savitz@barrons.com
