Apple Stock Gains as Makes Wedbush’s Top Pick

Apple Stock

Due to macroeconomic uncertainty, the tech industry is still being “ignored” in 2023, so Apple (NASDAQ:AAPL) is still Wedbush Securities’ top tech pick.

Apple (NASDAQ:AAPL) analyst Dan Ives decreased his price estimate on the stock to $175 on Wednesday. He emphasized that despite the economy’s deterioration, the demand side of the IT giant is still holding up, and Apple stock’s risk/reward ratio is “a table-pounder at current prices.”

In Thursday’s premarket trade, Apple (NASDAQ:AAPL) shares were slightly higher at $126.68.

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Apple Stock Outlook

Ives said that the worsening economic conditions worldwide, the compression of earnings multiples, the technical breakdowns of many companies, and concerns over the nature of 2023 guidance make it simple for Wall Street to be pessimistic about the technology sector.

But while this near-term macroclimate uncertainty will, in our judgment, contribute to the next growth cycle over the coming years that starts now, “our approach through 2023 is a much more opportunistic one for the IT sector,” Ives wrote in a note to investors.

The analyst went on to say that IT companies are trying to keep their margins (NASDAQ:AMZN) while getting smaller, citing recent layoff announcements from Salesforce (NYSE:CRM) and Amazon. Businesses such as Microsoft (NASDAQ:MSFT) and Meta Platforms (META) have recently announced layoffs.

Businesses such as Microsoft and Meta Platforms have recently announced layoffs.

Ives added that the top two cloud software options for the company in 2023 are Microsoft (NASDAQ:MSFT) and Salesforce (NYSE:CRM).

Ives said that the tech industry as a whole is expected to give “cautious” guidance at the beginning of the year and that multiples are already below their five-year norm, making it the “most under-owned” sector since 2009.

Wedbush also has positive opinions on the following companies: Palo Alto Networks, Check Point Software, CyberArk, Tenable, Zscaler, and CrowdStrike.

The stock of Apple (NASDAQ:AAPL) could hit $250 million by next year, according to Gene Munster, an analyst at Loup Ventures, who said he is still bullish about the company’s long-term prospects.

Featured Image: Pexels @ Mateusz Taciak

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