But the stock, stuck in the low $130s, has to grow by a third to get even there.
From Conner Smith's "Deutsche Bank Cuts Apple Stock Price Target on Consumer Spending Concerns" posted Tuesday by Barrons:
As Wall Street worries about how inflation might affect consumer spending, Deutsche Bank just cut its price target on Apple AAPL +0.45% stock.Analyst Sidney Ho lowered his price target on Apple (ticker: AAPL) to $175 from $200, though he maintained a Buy rating. His new price target still implies a roughly 33% upside from recent levels...
Ho wrote that though the stock has performed in line or better than most of its megacap peers, he thinks macro uncertainty could continue to weigh on investor sentiment. He trimmed Apple’s target multiple to 26 times forward earnings estimates, as he doesn’t see the stock returning to its five-year high of more than 30 times in the coming year.
Ho notes that though the company didn’t provide a formal June-quarter outlook when it reported results in April, its comments about supply-chain constraints, foreign-currency impacts, and impacts related to the Russian-Ukraine war suggested to him that revenue growth could come in the low-single digits. He estimates revenue growth of 3% year over year, compared with the consensus of 1% growth.
"Considering the macro environment (rising interest rates, slower consumer spending, and continued geopolitical uncertainties) in the past 1+ month, we do think risk to our estimate is to the downside, and we would not be surprised to hear more chatters about Apple cutting orders,” Ho wrote.
Maintains Buy rating, lowers target to $175 from $200.
My take: Watch out for falling targets in the weeks ahead.