Why Apple stock climbed in Monday trading

Shares of Apple moved higher in Monday trading, up $3.24 (+2.35%) to close at $141.11, after two prominent analysts reiterated buy ratings on AAPL stock ahead of the company’s earnings report due February 2nd.

Jeremy Bowman for The Motley Fool:

In a note this morning, UBS analyst David Vogt maintained his buy rating and a price target of $180 on the stock, noting that his earlier decision to lower his estimates on supply chain issues didn’t account for the weakening dollar, especially against currencies in Apple’s top foreign markets like Europe, the U.K., China, and Japan.
On its fiscal fourth-quarter earnings call, Apple had guided for a 10 percentage-point headwind in foreign currency, but Vogt believes the actual headwind will be four to five percentage points less than that.
Deutsche Bank also raised its buy rating on Apple ahead of its earnings report next Thursday. Analyst Sidney Ho lowered his price target on the stock from $170 to $160, though he said he expected Apple’s Q1 results to meet or slightly beat his estimates. He noted that supply constraints have improved since the company’s announcement of delays back in November and that the risk/reward in the stock is positive following a recent pullback in the share price.

MacDailyNews Take: On its fiscal Q422 earnings call, Apple guided for a 10 percentage-point foreign currency headwind, but UBS’s Vogt believes the actual headwind will be 4-5 percentage points less than that, which bodes well for an Apple earnings beat.
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[Thanks to MacDailyNews Reader “Fred Mertz” for the heads up.]
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