In a sign normalcy is edging closer, Apple (AAPL) announced it will open a further 100 stores across the US this week, further adding to the 30 already open.
All in all, Apple has 510 stores around the world, of which 271 are based in the US. With stores in China (42) and Germany (15) now fully open, Deutsche Bank analyst Jeriel Ong estimates that between 200-250 stores will remain shuttered around the world by the end of the week.
Furthermore, Ong estimates that Apple’s 510 retail stores’ annual revenue is roughly $25 billion today, making up between 8-9% of the company’s TTM (twelve trailing months) revenue.
Ong believes the uncertain macro environment’s impact on Apple’s upcoming product launches is hard to gauge, but when considering Apple as an investment, the analyst points out the “potential reward from stock outperformance as skewed positively when compared to the company’s risk profile.”
Ong further said, “We see store reopenings as a directional sign of improving trends and a drift toward a more normalized demand environment for AAPL. While high unemployment and smaller consumer pockets have us worried for the next-gen iPhone launch that typically comes in September/October, we continue to tilt bullish on AAPL.”
Accordingly, Ong reiterated a Buy rating and boosted the price target from $305 to $320. Upside from current levels is a minuscule 0.5%. (To watch Ong’s track record, click here)
The rest of the Street remains bullish towards the Cupertino giant, too. A breakdown of Apple’s Strong Buy consensus rating reveals 1 Sell and 4 Holds are outnumbered by 27 Buys. However, with the way things stand, the Street sees limited near-term upside potential as the average price target of $319.48 implies upside of nearly 1%. (See Apple stock analysis on TipRanks)
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