Investors were in a bullish mood and willing to consider buying beaten tech stocks, buoyed by Friday’s good US jobs data.This helped push up the price of apple (AAPL 3.68%) Shares rose 4% and two new analysts bought the company.
Friday morning before the market opens Morgan Stanley Prophet Erik Woodring repeated his overweight (buy) recommendation at Apple. In fact, Woodring said he maintains a target of $175 per share, suggesting a 35% upside potential, so the buy may be undervalued.
Analysts feel the $115 to $120 price range, where the stock recently traded, is a “short-term floor” and worth significantly higher. Given that, he added, his research does not show a weakening demand for Apple products, as many fear.
Also on Friday, Woodring fellow Ming-Chi Kuo of TF International gave his opinion on Apple. Citing his source, Anonymous Supply Chain, Kuo revealed in a post on Medium that the tech giant has canceled plans to produce and sell his 2024 iPhone SE 4 model. I made it He said this was due to “concerns that the performance of our in-house baseband chips may not be up to par.” Qualcomm The chip used in standard iPhone models.
The SE line is Apple’s lower-priced iPhone model, so investors might welcome the fact that the company’s famously high profit margins don’t degrade in the slightest from these lower-priced offerings. Bargain hunters have come to view such trolls in tech stocks as an excellent bargain. Investors will see if the momentum continues.
Eric Volkman holds a position at Apple. The Motley Fool US headquarters recommends Apple and his Qualcomm. The Motley Fool recommends the following options: Apple’s March 2023 $120 Long Call and Apple’s March 2023 $130 Short Call. The Motley Fool’s U.S. headquarters has a disclosure policy.