Apple Stock Forecast:
According to 28 analysts, the average target price for Apple Inc. over the next 12 months is $169.58. The average analyst rating for the company is “Buy.” Stock Target Advisor’s analysis of Apple Inc. is “Bullish,” based on 10 positive signals and 4 negative signals. The company’s stock price at the last closing was $129.62. In the past week, the stock price has decreased by 0.24%, but has decreased by 9.13% in the past month and 24.71% over the past year.
Apple Analyst Coverage:
On January 9th, Sanford Bernstein lowered its target price for Apple Inc. from $170 to $125. This means that the investment firm expects the company’s stock to reach a price of $125 over the next 12 months.
Last week, Wedbush has maintained its “Outperform” rating on Apple Inc. with a target price of $175, down from $200. BNP Paribas has downgraded its rating on the company to “Neutral” with a target price of $140. STA Research has maintained its “Buy” rating on Apple Inc. with a target price of $160. These ratings and target prices suggest that Wedbush and STA Research have a positive outlook on the company, while BNP Paribas has a more neutral view.
Apple News:
Peter Stern, the vice president of services at Apple Inc., is reportedly leaving the company. Stern was seen as a potential successor to Eddy Cue, Apple’s senior vice president of services. In response to Stern’s departure, Apple is dividing up his responsibilities among multiple executives, including Oliver Schusser and Robert Kondrk. Stern was responsible for the business side of Apple’s TV+, iCloud, Apple One bundles, and News+. His departure adds to a recent wave of senior executives leaving the company, including the head of industrial design, chief privacy officer, information systems chief, head of the online store, vice president of procurement, and vice presidents of hardware and software engineering. Stern played a significant role in expanding Apple’s subscriptions business and launching bundles of its services. Apple’s services business, led by Cue and Stern, has become one of the company’s most important divisions, generating nearly $80 billion in revenue in fiscal 2022.
Positive Fundamentals:
There are several negative fundamentals to consider when evaluating Apple Inc.’s stock:
- Overpriced compared to book value: The stock is trading at a high price compared to its peers based on the price to book value ratio. This means that the stock is valued at a higher price compared to the value of its assets as recorded on the company’s balance sheet.
- Overpriced on cashflow basis: The stock is trading at a high price compared to its peers based on the price to cash flow ratio. It is priced above the median for its sector. This may indicate that the stock is overvalued compared to the amount of cash it generates.
- Highly leveraged: The company has a high level of debt compared to its equity, placing it in the bottom half compared to its sector peers. This may indicate a higher level of risk for investors.
- Overpriced on free cash flow basis: The stock is trading at a high price compared to its peers based on the price to free cash flow ratio. It is priced above the median for its sector. This may indicate that the stock is overvalued compared to the amount of cash it generates after accounting for capital expenditures.
Negative Fundamentals:
There are several negative fundamentals to consider when evaluating Apple Inc.’s stock:
- Overpriced compared to book value: The stock is trading at a high price compared to its peers based on the price to book value ratio.
- Overpriced on cashflow basis: The stock is trading at a high price compared to its peers based on the price to cash flow ratio. It is priced above the median for its sector.
- Highly leveraged: The company has a high level of debt compared to its equity, placing it in the bottom half compared to its sector peers. This may indicate a higher level of risk for investors.
- Overpriced on free cash flow basis: The stock is trading at a high price compared to its peers based on the price to free cash flow ratio. It is priced above the median for its sector.
About Apple:
Apple Inc. is a technology company that designs, develops, and sells consumer electronics, computer software, and online services. The company’s best-known products include the iPhone, the iPad, the Mac, the iPod, and the Apple Watch. Apple also offers a range of services, such as the App Store, Apple Music, iCloud, and Apple Arcade. The company was founded in 1976 by Steve Jobs, Steve Wozniak, and Ronald Wayne, and is headquartered in Cupertino, California. Apple has a market capitalization of over $2 trillion and is one of the most valuable and influential companies in the world.
