Apple (NASDAQ:AAPL), one of the most admired brands in the world, has several strong points to steer it through headwinds as the world heads into the turfs of a recession. Despite a few hiccups here and there, Wall Street is largely bullish on AAPL stock. Tigress Financial Partners analyst Ivan Feinseth is one of the bulls who recently reiterated his faith in Apple and noted several points to justify his stance.
Analyst Not Too Worried about iPhone 14 Production Plans
Apple was thrown into the limelight recently when Bloomberg reported that the company has reconsidered a second-half production ramp for iPhone 14. This sparked speculations that demand for the flagship device has failed to gain the expected traction.
However, Feinseth feels that “the sell-off in AAPL’s shares over weakness on reported iPhone 14 production reduction is a buying opportunity as it’s all about revenue growth and not unit volume.” The analyst is positive that the top models of iPhone 14 Pro are still experiencing strong demand and “continue to outsell entry-level phones.”
Moreover, Feinseth also opined that buyers of the flagship iPhones are more likely to drive growth and profitability by consuming more expensive Apple Services.
Other Achievements That Highlight Apple’s Strength
Among the major milestones that Apple hit this year is counterbalancing the impacts to its business from the COVID-led lockdowns in China, suspension of business in Russia, and significant currency headwinds.
“AAPL’s industry-leading position and strong brand equity, driven by its innovative ability and powerful cash generation, will continue to generate an increasing Return on Capital (ROC), driving the ongoing growth of Economic Profit and shareholder value creation,” noted Feinseth. The analyst is impressed with the company’s ability to navigate and overcome major headwinds that have led big companies to bite the dust this year.
Feinseth also noted that the CarPlay Interface for vehicles underscores the company’s efforts to expand its presence in the automotive market, which can create a solid path for growth based on the increasing demand for driver assistance systems.
Furthermore, Feinseth also believes that the launch of Apple’s virtual reality headset this year or early in the next year has the potential to pave the way for a “paradigm shift” in Apple’s portfolio of offerings.
Moreover, Feinseth is optimistic that Apple’s solid balance sheet and cash flows will continue to support future growth, acquisitions, and higher shareholder returns.
Is Apple a Buy, Hold, or Sell?
Needless to say, the analyst maintained his Buy rating and $210 price target on AAPL stock, buoyed by the belief that “new product introductions, an ever-expanding ecosystem, and increasing services revenue will continue to drive accelerating Business Performance trends.”
Wall Street is also strongly optimistic about Apple stock, with a Strong Buy consensus rating based on 24 Buys, four Holds, and one Sell. The average price target of $182.97 indicates that AAPL stock can still grow about 30% from current price levels over the next 12 months.
Conclusion: Apple is Worth Taking a Bite Of
Simply put, Apple is too big to fail. The numerous avenues that the company is expanding into have created a strong case for not only growth in its business but also stock appreciation.
