Analyst sees several catalysts for Apple stock in 2023

Amidst a difficult end to 2022, a Citi analyst believes Apple’s stock has several catalysts to help it trade higher in 2023.

Angela Palumbo for Barron’s:

Citi analyst Jim Suva maintained his Buy rating and 12-month price target of $175 on Apple. He wrote in a research note that “while the December quarter is constrained by supply (China COVID closures impacting production), we believe demand for Apple’s products and services is likely to remain resilient throughout full year 2023.”
“Investor sentiment across consumer tech hardware is very dour, with many believing that the strong growth seen overall in iPhones over the past two years … is likely to see sharp declines ahead as macro inflationary pressures take a bite out of consumer spending. We do not believe this is the case,” Suva wrote. He added that there is an estimated 1 billion-plus iPhone users now, and he expects that number to not only grow but for those users to continue to upgrade their phones to newer models over the years.
“Our research does not indicate smartphone replacement rates are lengthening (compared to recent levels) and are holding steady, and in some cases even shortening overall. This implies users value their devices and technology and will likely continue to invest in upgrades on a regular cadence,” Suva said.

MacDailyNews Note: On January 27, 2022, CEO Tim Cook announced during Apple’s Q1 FY 2022 earnings conference call, “we are pleased to see that our active installed base of devices is now at a new record with more than 1.8 billion devices.”
We expect Apple’s active installed base of devices to approach two billion devices, when that figure in next announced as it grew from 1.5 active billion devices in January 2020 and 1.65 active billion devices in January 2021.
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