Now Is the Time: Analyst Suggests Buying Apple (AAPL) Stock on the Dip
So much for starting off 2019 on a high note. Apple (AAPL) adjusted guidance for the December quarter, dropping the revenue forecast between $5 and $7 billion. Apple hasn’t needed to scale back on quarterly guidance in about a quarter century. As a result, AAPL fell around 10% on the day of the announcement. However, Tigress analyst Ivan Feinseth says while many are having a meltdown about the stock price, it is actually a good time to buy the stock on weakness, Feinseth reiterates a Strong Buy rating for the stock. (To watch Feinseth’s track record, click here)
Feinseth believes Apple can overcome the weakness, especially in China, once the U.S. – China trade agreement is put in place. Moreover, the analyst suggests there is “an opportunity for upside in Business Performance as expectations have been significantly ratcheted down.”
“The opportunity to monetize AAPL’s current 750 million + iPhone user base will drive long-term upside gains in the stock. AAPL’s Services business segment continues to emerge as one of the company’s future drivers of growth and profitability, along with its ongoing development of new and fast-growing technologies including autonomous vehicle capabilities, artificial intelligence (AI) applications, and both artificial reality (AR) and virtual reality (VR) functionality and products. AAPL is opening up manufacturing facilities in India to address local markets. AAPL continues to dominate the fast-growing smart wearables market which will continue to gain traction as more features, and most importantly the inclusion of more advanced health monitoring capabilities, continue to be incorporated into functionality. AAPL’s ongoing commitment to return significant amounts of cash to shareholders will also enhance the stock’s total return. We believe significant upside in the shares exists from current levels and continue to recommend purchase,” Feinseth explains.
Overall, TipRanks analytics show analysts are evenly split about how to move forward with this stock. Out of 36 analysts, 18 call it a Buy and the other half are sidelined. The Street price target of $181.07 show a potential upside of 22% from current levels. (See AAPL’s price targets and analyst ratings on TipRanks)