Wedbush maintains Outperform rating and $200 price target on Apple

Despite estimating a 5% decrease in iPhone 14 supply, Wedbush Managing Director and Senior Equity Research Analyst Daniel Ives on Wednesday maintains an “Outperform” rating and $200 price target on Apple shares.

Daniel Ives via Philip Elmer-DeWitt’s Apple 3.0:

The zero Covid China shutdowns in Foxconn have been a major gut punch to Apple this quarter and we believe have taken roughly 5% of iPhone 14 units out of the supply chain and thus putting Cupertino in a “major shortage” heading into the next month…
China production woes the albatross on the Apple story. After battling the macro headwinds and delivering a strong September quarter/guidance in a stark contrast to the rest of Big Tech, this latest zero Covid situation is an absolute body blow for Apple in its most important holiday quarter…
While not the news any bull wants to hear from Apple, it’s a supply issue and related to China’s zero Covid policy which is a very frustrating situation for Apple (and its investors) yet again, but not demand driven.

MacDailyNews Take: As we wrote last week, “These iPhone 14 Pro sales are merely deferred, not lost. Some may shift down to iPhone 14 and iPhone 14 Plus, but most buyers will simply wait for supply to catch up amidst strong demand.”
See also: Tim Cook firmly latched Apple onto China’s CCP teat. What’s his plan for weaning it off? – November 2, 2022
Please help support MacDailyNews. Click or tap here to support our independent tech blog. Thank you!
Shop The Apple Store at Amazon.

The post Wedbush maintains Outperform rating and $200 price target on Apple appeared first on MacDailyNews.