Breaking News
Get Actionable Insights with InvestingPro+: Start 7 Day FREE Trial Register here
Investing Pro 0
Ad-Free Version. Upgrade your Investing.com experience. Save up to 40% More details

Apple 'Not Inexpensive', Bernstein Says

Stock Markets Jun 23, 2022 09:05AM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
© Reuters. Apple (AAPL) 'Not Inexpensive', Bernstein Says

By Vlad Schepkov

“We note that Apple is not inexpensive & worry that EPS estimates for 2023 may be too high” – claims Toni Sacconaghi of Bernstein, as he looks out to what the future may hold for one of the world’s most valuable public companies.

The analyst highlights Apple’s (NASDAQ:AAPL) staggering historical tendency to outperform the broader market in the 3-month period ahead of new iPhone launches (between June and September) – “Apple has outperformed 14 of 15 years before iPhone launches” – but questions if 2022 is the year the trend finally breaks?

He sees several key concerns that may continue to hinder the shares through September 2022 and after:

  1. Despite a major pull-back – AAPL is down just close to 30% from highs of January 2022 – the stock is still “trading above historical levels on a relative basis (1.36x vs. 1.09x), and above other FAAMG names with higher growth.”
  2. Potential economic downturn may have an outsized impact on the company that is “consumer centric, and is highly transactional, with less than 10% of its revenues and profits being recurring.”
  3. Lastly, the analyst sees tailwinds of COVID-19 period potentially turning into major headwinds going forward: “we continue to believe that AAPL over-earned in FY 21 (and FY 22) amid work/learn from home, which could reverse, particularly as consumer spending priorities change.”

Bernstein does leave the room open for potential outperformance, citing current “generally cautious” investor sentiment, as well as Q3 estimates that “do not look unreasonable”, but concludes that on the sum of all factors, “risk/reward over the next 6 months - 2 years is neutral to modestly negative”.

The analyst reiterates a “Market Perform” rating with a $170 price target on the shares.

AAPL closed at $135.35 yesterday, down 26% YTD, but still up over 1% from this time one year ago.

Apple 'Not Inexpensive', Bernstein Says
 

Related Articles

Germany stocks lower at close of trade; DAX down 0.31%
Germany stocks lower at close of trade; DAX down 0.31% By Investing.com - Jul 04, 2022

Investing.com – Germany stocks were lower after the close on Monday, as losses in the Retail, Construction and Technology sectors led shares lower. At the close in Frankfurt, the...

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:  

  •            Enrich the conversation, don’t trash it.

  •           Stay focused and on track. Only post material that’s relevant to the topic being discussed. 

  •           Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.

  • Use standard writing style. Include punctuation and upper and lower cases. Comments that are written in all caps and contain excessive use of symbols will be removed.
  • NOTE: Spam and/or promotional messages and comments containing links will be removed. Phone numbers, email addresses, links to personal or business websites, Skype/Telegram/WhatsApp etc. addresses (including links to groups) will also be removed; self-promotional material or business-related solicitations or PR (ie, contact me for signals/advice etc.), and/or any other comment that contains personal contact specifcs or advertising will be removed as well. In addition, any of the above-mentioned violations may result in suspension of your account.
  • Doxxing. We do not allow any sharing of private or personal contact or other information about any individual or organization. This will result in immediate suspension of the commentor and his or her account.
  • Don’t monopolize the conversation. We appreciate passion and conviction, but we also strongly believe in giving everyone a chance to air their point of view. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Continue with Google
or
Sign up with Email