Amid the talks of an economic downturn, Wamsi Mohan, Bank of America (NYSE: BAC) senior IT analyst, joined CNBC’s ‘Squawk Box’ to discuss Apple stock. Mohan stressed the quality and safety of Apple’s balance sheet safeguarding the price despite some big headwinds on the horizon.
AAPL chart and analysis
Meanwhile, the company’s stock is up roughly 10% since hitting mid-June lows, mostly retaining the outperformance it gained in 2021 compared to other tech stocks. July trading sessions resemble an accumulation phase for AAPL as the stock shot up and closed above both the 20-day and 50-day Simple Moving Average (SMA). Currently, the trading range seems to be set between $134 and $147, with trading volumes hovering around the averages. Similarly, analysts see the stock as a strong buy, with the next 12 months’ average price prediction at $185.05, 25.85% higher than the current trading price of $147.04.
Earnings power
According to Mohan, Apple as a short-term trade does not seem to be a safe haven play; rather, it appears to be more of Apple’s distinctive things that are insulating the price of the shares, without perhaps huge price target cuts that have been seen with other technology firms. He also added: In conclusion, it looks as though Apple, like all companies, faces similar headwinds with inflation and supply chain issues; yet, it appears it will be able to transfer some of these costs to the customers. Licencing revenue may decelerate this quarter, with a possibility of recovery. Still, the gist of their business model looks resilient and should help the stock come out fairly unscathed on the other side of this. Buy stocks now with Interactive Broker – the most advanced investment platform Disclaimer: The content on this site should not be considered investment advice. Investing is speculative. When investing, your capital is at risk.
