AAPL stock is trading up at $77.24 as of 01:15 PM EDT.
Morgan Stanley’s top pick remains Apple (NASDAQ:AAPL), even though the investment company admitted that threats to consumer and enterprise operations are increasing and “suggesting additional downside to forecasts.”
Analysts under the direction of Erik Woodring lowered the earnings per share estimates and price targets for several hardware and enterprise stocks, including Apple (NASDAQ:AAPL), Seagate Technology (STX), GoPro (GPRO), Logitech (LOGI), Sonos (SONO), CDW (NASDAQ:CDW), Dell Technologies (NYSE:DELL), and HP (HPQ). Analysts say that the fact that the group did worse than the S&P 500 and NASDAQ by 16 and 7 points, respectively, shows that hardware has been doing worse this year.
According to the analysts, the underperformance is caused by a variety of factors, including waning demand for consumer electronics and personal computers; budget-busting macroeconomic uncertainty for enterprise hardware; inflation at or near a 40-year high; and high balance sheet and channel inventories.
The analysts said that they think it is still too early to be optimistic about hardware names and that, even though the market is pricing in “bad news” more and more, the third-quarter setup is still a problem. The association also said that some businesses had already cut their predictions for the coming year but that more cuts were expected when the results season started.
AAPL stock optimistic
Analysts say that this means that Apple (NASDAQ:AAPL) and CDW (NASDAQ:CDW), which have the highest conviction names, are biased toward “quality,” with Apple giving “more protection during a downturn.” On October 27, Apple (NASDAQ:AAPL) is expected to release its earnings.
Morgan Stanley says that there is a “higher risk of negative revenue and earnings revisions post-COVID” for Logitech (NASDAQ:LOGI), Xerox (NASDAQ:XRX), and Cricut (NASDAQ:CRCT), which are the top underweight suggestions. Credit Suisse said at the beginning of this month that the iPhone 14 Pro and iPhone 14 Pro Max would continue to be popular, which would be good for Apple (NASDAQ:AAPL).
Apple Stock Price Expectations Are Shifting
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