Why Apple stock is a must buy for 2023 – analyst

Apple stock now trades on a forward price-to-earnings ratio of 22, a roughly 21% discount to its historical average. At 16 times forward enterprise-value-to-EBITDA, Apple’s stock trades at a 17% haircut to its historical norm. Apple’s current compelling valuation has caught the attention of Citi’s tech analyst Jim Suva.

Brian Sozzi for Yahoo Finance:

“We believe demand for Apple’s products and services is likely to remain resilient throughout FY23. We do recognize that regulatory risks remain a major overhang on the stock, but we view these as headline risk rather that fundamental risk. Such headlines could provide a near-term stock pullback which we would view as a buying opportunity for Apple shares,” Suva wrote in a new 20-page report to clients.
Added Suva, “Apple’s current market value does not reflect new product category launches. This will change with the launch of the new AR/VR headset in 2023 and foldables in 2024.”
Here are the six factors behind Suva’s bullish 2023 call on Apple.
1. Here comes India
2. iPhone sales growth
3. Services sales upswing
4. New products
5. Regulatory risk overblown
6. Increased buybacks and dividends

MacDailyNews Note: In his note, Suva reiterated a “Buy” rating on Apple with a $175 price target.
Be fearful when others are greedy and be greedy when others are fearful. – Warren Buffett
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