The uncertainty of the economies in turmoil following the spread of a virus and the fears of a global recession cause short-term concerns for UBS. Apple Inc. (NASDAQ: AAPL), but not enough to abandon the sales company’s purchase recommendation in light of expectations for continued long-term growth.
Investors were also starting to show some discomfort on Friday as Apple stocks fell about 3%.
Apple analyst
UBS analyst Timothy Arcuri maintained a purchase note on Apple with a target price of $ 355.
Apple’s takeout
Apple is taking a hit on both sides of the world, the coronavirus problem affecting demand in China and fears of a return to economic recession in the United States, Arcuri said in a note on Friday. (See his report here.)
“We remain cautious in the short term – especially on the demand side if the United States suddenly enters a recession of several quarters,” said the analyst in a note on Friday.
Arcuri expects demand to remain weak in China, with the hope that a return to normal purchasing habits will take time after the threat of the coronavirus.
The analyst predicts that the monthly data on smartphones will be weaker in February and March, even compared to January, which saw a drop of 28% from one year to the next.
Citing the growing risk of falling demand in the short term, Arcuri lowered the June quarter forecast for Apple, but maintained the longer-term estimates, as well as the price target and overall long-term outlook, unchanged.
“We see short-term uncertainty, but the long-term opportunities for 5G and foldable phones, the growth of portable devices given the low connection rate and the pull of new services are unchanged.”
AAPL Prize Action
Apple shares were down 2.92% to $ 284.36 when released Friday.
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Latest AAPL reviews
Dated | Strengthen | action | Of | AT |
---|---|---|---|---|
March 2020 | German Bank | Maintains | hold | |
March 2020 | Cascend | Reiterates | Buy | |
March 2020 | Oppenheimer | Updates | Carry out | Surpass |
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