Apple's China, EV Headwinds Show It's Not All 'Roses And Rainbows' For Company, Analyst Says 'Next Phase Of Monetization Is On The Horizon'
Portfolio Pulse from Chris Katje
Wedbush analyst Daniel Ives maintains an Outperform rating on Apple Inc (AAPL) with a $250 price target, despite challenges in China's smartphone market and the discontinuation of Apple's EV project. Ives highlights sluggish iPhone sales in China, which accounts for 20% of global sales, and competition from Huawei. However, he remains bullish due to achievable iPhone sales estimates for 2024 and 2025, strong growth in the Services segment, and the potential for App Store enhancements through AI. Apple shares are currently down 2% to $171.19, with a 9% decrease year-to-date in 2024.
March 05, 2024 | 3:49 pm
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Apple faces headwinds in China's smartphone market and has discontinued its EV project, but strong future iPhone sales, Services growth, and AI enhancements keep analyst Daniel Ives bullish with a $250 price target.
Despite the negative news and challenges, including significant headwinds in the Chinese market and discontinuing the EV project, the bullish stance by Wedbush analyst Daniel Ives is based on strong fundamentals like the potential for iPhone sales growth, the robust Services segment, and upcoming enhancements in the App Store driven by AI. These factors could mitigate the short-term impacts of the current challenges, leading to a neutral short-term price direction.
CONFIDENCE 85
IMPORTANCE 90
RELEVANCE 100