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Apple Drops 4.6% After Bearish Comments From One Top Analyst

Shares of Apple (AAPL) fell over 4.55% on Thursday after Goldman Sachs analyst Rod Hall signaled weaknesses in the company in the near term amid the coronavirus uncertainties. However, Hall raised his price target to $299 (19% downside potential) from $263.

Hall warned investors to ‘avoid the stock’ in the near term. He believes that the absolute trading level is ‘unsustainable’ and therefore, investors should wait until the outlook of the company is clearer.

The iPhone maker is set to report its earnings next week. He expects Apple not to provide its guidance for the upcoming quarterly results, which could leave investors jittery about the next iPhone launch.

The analyst fears that the company might delay the much-awaited launch of its next iPhone amid the coronavirus concerns, which could significantly hit investors’ confidence. He stated that a one-month delay could hit revenues by 7% and earnings by 6% for the last quarter of 2020. He also expects weakness in the demand and average selling prices through the remainder of 2020.

Overall the Street has an optimistic outlook on AAPL. With 25 Buys, 6 Holds and 1 Sell, the analyst consensus rates AAPL a Strong Buy. The average target price of $369.43 is roughly at par with its closing price on July 23. (See AAPL stock analysis on TipRanks).

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Amit Singh
Amit Singh jumped into the world of stock analysis and investing after completing his Post Graduate Diploma in Finance in 2009. Before joining TipRanks in 2020, he worked as an equity research analyst for eight years. With a keen eye for identifying strategic investment opportunities, his work entails evaluating stocks, building financial models, writing company-specific research reports, and identifying the overall financial worth of companies in the consumer staples and technology sectors. In 2017, Amit found a way to combine his expertise in evaluating companies with his passion for writing. He has also worked with the financial research firm Market Realist.

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