Shares of Apple Inc (NASDAQ: AAPL) are down more than 2.0% on Friday in sympathy with the broad market that turned red on reports of a new COVID variant. But Citigroup’s Jim Suva says buy the dip because it’s going to be another strong quarter for the iPhone maker.
Suva’s remarks on CNBC’s ‘Squawk on the Street’
Suva expects strong sales for Apple products and services in the holiday quarter. On CNBC’s “Squawk on the Street”, he said:
We expect their sales to be up year-over-year, and this is off of difficult comps. We think Apple continues to grow both its hardware and its services, and we expect technology at large to continue to lead as people navigate through this Coronavirus scare.
Suva rates AAPL at “buy” with a price target of $170 that represents a nearly 8.0% upside from here. His outlook starkly contrasts Satori Fund’s Dan Niles’ who sees Apple as the most overpriced tech stock that exists.
D.A. Davidson’s Tom Forte agrees
Last month, Apple said the ongoing supply constraints resulted in a $6.0 billion hit to its quarterly revenue and warned the impact could be even bigger in the holiday quarter. D.A. Davidson’s Tom Forte, however, expects strong demand to make up for it.
I do think that demand is very strong. 2021 is potentially the year of a digital holiday with consumers unable to buy physical products and leaning into digital ones. Apple has a ton of services and a very large installed base and, therefore, is very well-positioned in that regard.
Earlier in November, a Bloomberg report said Apple could launch its first fully autonomous vehicles by 2025.
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