Canada
Argentina 
Australia 
Austria 
Brazil 
Chile 
Czechia 
France 
Germany 
Greece 
Italy 
Mexico 
New Zealand 
Nigeria 
Norway 
Poland 
Portugal 
Sweden 
Switzerland 
United Kingdom 
United States Apple Stock Halts Slide. What Analysts Say About Its Recovery ...
Apple shares stopped their slide Friday following a ban on the use of iPhones and other foreign owned smartphones by Chinese government officials. Wall Street analysts say the restrictions have taken the shine off the stock but it’s not time to sell.
Apple (ticker: AAPL) shares were up 0.1% in premarket trading on Friday at $177.78, having shed 6.3% over the preceding five days. The company lost almost $200 billion in value over several days as investors digested the potential effects of the Chinese ban.
The ban isn’t a reason to panic but it could limit the potential performance of Apple shares for the rest of the year according to analysts at J.P. Morgan. They lowered their target rating on Apple to $230 from $235, although they kept an Overweight rating.
“The [Chinese government] restrictions are coinciding with the recent launch of Huawei Mate 60 Pro (e.g., Huawei’s 5G smartphone), and the restrictions will make it tougher for Apple to continue to deliver share gains in the local market,” the J.P. Morgan analysts wrote.
Apple bulls could be hoping the launch of the iPhone 15, expected on Tuesday, will give a lift to the stock. However, sales volumes for the model are set to come in at 130 million over the four quarters following its launch compared with 137 million for the iPhone 14’s launch over the same period, according to J.P. Morgan’s estimates.
It’s a similar story for Citi ’s Atif Malik, who closed an ‘Upside Catalyst Watch’ for Apple stock, indicating less excitement around the potential of the iPhone 15 launch. Malik said the news of the China restrictions and the Huawei Mate 60 launch was a headline risk for the stock, although he kept a Buy rating and $240 target price.
Write to Adam Clark at adam.clark@barrons.com
