Apple Inc (AAPL)

[Investors3]

Citigroup analyst: Buy Apple

Apple shares have sold off about 8% since the unveiling of new Apple Watches, updated iPads, and various other things — shares turned green and are up today in late trading — but an analyst today sees good things about Apple’s future.

https://macdailynews.com/2020/09/21/citigroup-analyst-buy-apple/

Jon C. Ogg for 24/7 Wall St.:

Citigroup’s Jim Suva, who had a street-high target back in June before the stock split, has reiterated his Buy rating and raised his price target to $125 from $112.50. That might not seem much of an upgrade, but Apple opened at $104.54 on Monday, during the big drop that has been seen. Apple shares were down about 24.2% from the all-time high of $137.98 seen shortly after the split.

One thing that Citi has been consistently positive about is that gains against Huawei and others could result in additional sales amounting into the billions of dollars. Apple’s upcoming iPhone 12 is expected finally to unlock that ecosystem and iPhone super-cycle that has been touted by many Wall Street analysts.

Citi still expects strong incremental sales out of Apple’s wearables and from its services that make up its ecosystem. The firm has seen a continued praise of revenue diversification and unique products. All this and the services boost that come into play are expected to generate a continued level of strong cash flows from Tim Cook and the team. The firm also expects high levels of capital to be deployed back to shareholders via stock buybacks and dividend hikes in the years ahead.

MacDailyNews Take: Apple will come out of the post-COVID-19 recession in a very strong position. AAPL is significantly undervalued and should therefore be considered as available at a deep discount price today.

Related

Citi ups Apple price target to $160 on impending iPhone supercycle
Monday, March 6, 2017
In "News"

Why Apple shares can hit $400
Tuesday, June 16, 2020
In "News"

Citigroup: Apple will more than double buybacks due to Tax Cuts and Jobs Act
Thursday, April 5, 2018
In "News"