Even tech giants, like Apple, are vulnerable to the global semiconductor shortage. So although Apple expects to release an earnings report after the market close later today (July 20th) with a strong outlook, analysts keep a sharp eye on how these two factors influence AAPL stock price.
Analyst Sidney Ho of Deutsche Bank reported that the upgrade of iPhone capability to 5G is a strong buying incentive for consumers of the brand and remarks that brand loyalty makes consumers often return for more Apple devices.
Ho kept the stock as a Buy and foresaw a price target of $165. This target shows a possible 12-month increase of 15.83%. The consensus among most analysts keeps Apple as a moderate buy with an average price target of $158,62
The analyst gave an optimistic forecast about increases in iPhone production for the new model, possibly up to 90 million units from the usual 75 million. Despite the chip shortages and other supply chain issues, Ho believes Apple will begin shipping its new product in September of 2021.
Apple stock price closed yesterday at $142.45.
Will Apple keep this trend after this quarter’s earnings reports? What are your forecasts for AAPL?
