Morgan Stanley analyst Erik Woodring in a research note on Monday stays bullish on Apple, which is due to report September-quarter results next week, naming it his top pick.
Woodring cut his 2023 earnings estimates for the hardware group by 5%-10%, while chopping his price targets by an average of 15%, “to reflect elevated risk factors.” He notes that cuts are sharpest for companies with consumer hardware and PC exposure—including Cricut, HP Inc, Logitech International, Seagate Technology, and Xero — and smaller for Apple, CDW, Vivint Smart Home, and SmartRent.
Woodring advises investors to keep a “quality bias,” and maintains Apple as his top pick… he doesn’t see the company as entirely immune from a weakening consumer-spending environment, but he adds that his channel checks find that “demand has held up better than expected in recent months.”
Woodring increased his estimates for Apple’s September and December quarters, with strength in iPhone, iPad, and Mac demand more than offsetting weakness in wearables and services. His estimates for both quarters are now slightly above Street consensus, but his new forecast for the March quarter is below consensus. Woodring trims his target on Apple shares to $177, from $180.
MacDailyNews Take: Smart pick.
Apple iPhone customers are the most recession-proof smartphone buyers. —
And the same goes for Mac, Apple Watch, and iPad customers.
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