Bank of America Says AAPL Stock Can Climb 40%

  • Apple (NASDAQ:AAPL) is falling today, but some analysts foresee it rising again
  • Bank of America analyst Wamsi Mohan recently issued a bullish price target on AAPL stock
  • Other Wall Street experts agree with the analyst’s take
Close-up of Apple (AAPL) retail store Logo in Honolulu at the Ala Moana Center. Advertising the latest generation of the ipad, iphones, and ipods with a Retina display.
Source: Eric Broder Van Dyke / Shutterstock.com

Apple is falling today, but some experts think shares won’t be down for long. Bank of America analyst Wamsi Mohan recently issued a bullish $200 price target for AAPL stock and reiterated a “buy” rating.

It has been a difficult quarter for the tech sector, but Mohan sees Apple’s growth reacceleration as a reason to expect better performance in the months ahead. Here’s what investors should know.

What’s Happening with AAPL Stock?

AAPL stock has been sliding all day, in keeping with most of its tech peers. As of this writing, shares are down nearly 2% for the day. This decline is likely due to the negative momentum spurred by Snap’s (NYSE:SNAP) grim earnings forecast this morning. The news has pushed tech stocks down across the board.

Since the Federal Reserve hiked interest rates, Big Tech stocks have been fighting an uphill battle. AAPL stock is no different. Over the past one month, shares have shed nearly 14% despite several attempts to rally. Many experts see this decline as a buy-the-dip opportunity, however.

In a recent analysis of Apple, analyst Wamsi Mohan noted an interesting detail. For all of the stock’s turbulence, Apple app store revenue increased 7% year-over-year (YOY) in the third quarter, hitting $2.6 billion. Mohan classified this as a “modest re-acceleration,” adding that it represented 1% growth over the previous quarter.

For that reason, the analyst rated the stock as a “buy” and issued a $200 price target. Given the current share price of around $140, this type of performance would mark a significant step forward. Another analyst — Amit Daryanani of Evercore ISI — recently issued an even more bullish price target of $210. Daryanani also maintained a “buy” rating.

Why It Matters

These analysts aren’t the only experts who see AAPL stock’s decline as a buying opportunity. InvestorPlace contributor Chris Tyler recently characterized Apple as still “a buy despite its flaws.” According to Tyler, these flaws include the inflationary and supply-chain constraints posed by Covid-19 lockdowns in China and Russia’s war against Ukraine.

Morgan Stanley analyst Katy Huberty recently accounted for these economic headwinds in a note to investors:

“While we will continue to closely track the pace of China’s reopening, as well as Apple product lead times, for signs of supply challenges easing, we believe the underlying health of Apple’s product and services ecosystem remains remarkably stable, which is a clear differentiator in today’s more challenging macro environment.”

Huberty’s AAPL stock price target is slightly lower than Mohan’s at $195. However, she also maintained a “buy” rating.

Overall, the consensus on Wall Street seems to be that AAPL stock is a buy. Sure, its growth is modest, but it is still sustainable. That should reassure investors as negative market forces continue to threaten tech stocks.

On the date of publication, Samuel O’Brient did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.


Article printed from InvestorPlace Media, https://investorplace.com/2022/05/bank-of-america-says-aapl-stock-can-climb-40/.

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