According to MarketWatch, Citi analysts suggest five reasons to purchase Apple shares despite its falling target price.
The reasons include the release of the iPhone 14, a shift toward premium models, a $90 billion stock buyback, the possibility of additional devices-as-a-service, and the introduction of new product categories.
While the stock is down, Apple will release third-quarter earnings at the end of the month. According to MarketWatch, the loss is less than that of other major behemoths like Microsoft, Alphabet, and Meta.
Furthermore, supply chain issues and Apple’s pullout from Russia harmed the company’s third-quarter results.
The introduction of new products will help Apple stock
In addition, it was reported in April that Apple might conduct a stock repurchase of up to $90 billion. Although no formal announcement has been made, Citi analyst Jim Suva expects the Cupertino business would likewise increase its dividend.
Future product categories, such as the AR/VR headset and the Apple Car, have the potential to increase Apple’s market value. While both items are expected to be years away, they are nonetheless on investors’ radar.
The article also discusses the possibility of Apple transitioning to a device-as-a-service approach. Consumer Intelligence Research Partners (CIRP) examined the possibilities of this earlier this year and concluded that it may be a natural move for Apple.
iPhone 14 to launch soon
Citi analysts also believe that the expected September release of the iPhone 14 is a good cause to purchase Apple shares. Despite robust demand, Wall Street analyst Brian White says Apple’s flagship smartphone will face sluggish consumer spending this autumn.
With a weaker economy and inflationary forces eating into budgets, consumers may be more apprehensive about buying Apple’s upcoming iPhone innovation in the fall, possibly waiting until this economic inferno has passed before making such a purchase, White said in a note to clients.
