Apple stocks (AAPL) – Download the report from Apple Inc. has been bouncing up and down in the last few weeks and is now trading around $ 8 per share below my recent “reduce position” price. But the lack of momentum has not troubled Wall Street analysts, who increasingly believe Apple will reach a market capitalization above $ 3 trillion over the next 12 months.
Today, Apple Maven reviews the latest published sales reports and estimates the growing case of bulls on the shares of the company from Cupertino.
(Read more from Apple Maven: Apple Stock: Will Apple Car be the ultimate ‘Tesla killer?’)
Wall Street is moving up
As Apple shares strengthened as strongly as they did in late November and early December, something unique happened: despite Wall Street having a consensus rating of “strong buying” of stocks, the average target price fell below AAPL’s market value.
One of two things could happen: either analysts will have to lower their positions based on tight estimates, or raise their target prices to catch up. The latter eventually happened, suggesting confidence in a further opportunity to increase.
Last week, we pointed out that a wave of analysts presented their arguments for AAPL with a market capitalization of 3 trillion dollars or more. As for the purchase, Gene Munster of Loup Ventures even sought a fair value of $ 4 trillion based on opportunities in the metaverse and autonomous vehicles.
The latest report arrived from Citi on December 22nd. Analyst Jim Suva raised his target price by $ 30 to $ 200, citing several positive future developments: (1) resilient demand for products and services in the current fiscal year; and (2) the possibility of a mixed reality that is not fully reflected in the share price.
The bottom line is that Wall Street is looking beyond the short-term hurdles that pushed the price of AAPL stock from $ 180 two weeks ago to a high of $ 160 recently. Bearish pressures appear to have served as a catalyst for cheaper purchases of Apple shares, analysts say.
Is it time to buy an AAPL?
Late last week, I offered an action plan for those looking to buy Apple stock. First, I still think the AAPL is a good addition to a growth portfolio that isn’t exposed to it. By the way, I think that investors should:
- Consider accumulating AAPL if stocks are below the Nasdaq by 5 percentage points – which I estimated could happen at a stock price of $ 160.
- “Make a backup copy of the truck” in the unlikely scenario of a stock price falling below $ 150.
The chart below shows that on December 22, the AAPL lagged behind the Nasdaq index by about 2 percentage points from my article on “downsizing”. Therefore, the argument for buying AAPL is slowly gaining ground, but some poor performance is still not out of the question.
(Disclaimer: This is not investment advice. The author may have owed one or more shares mentioned in this report. Also, the article may contain affiliate links. These partnerships do not affect editorial content. Thanks to Apple Maven for support)
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