Is the Tech Sector Oversold? Wedbush’s Daniel Ives believes so, claiming it is more than at any other point during the past 5 years.
However, change is in the air, and surveying the current scenario, the 5-Star analyst believes that there are a lot of opportunities for investors right now. One, however, stands out the most. “Since the Fed’s decision last week, a clear ‘risk’ mindset has begun to take shape as the Street picks up high-quality tech stocks that we will characterize as relative bargaining prices.” Ives said recently. “We are firmly buying cloud, software, cyber security, chips and leading tech names led by FAANG. Apple (AAPL, Our clear favourite. ,
While supply chain constraints haven’t eased yet, based on a recent investigation by Ives in Asia, the analyst says there are some “understandable improvements” in the June quarter. And it bodes well for the upcoming iPhone 14 release.
Ives also believes that the demand trend for the iPhone has been very strong, estimating that based on the 5G iPhone 12/iPhone 13 “tag team product cycle” over the past 12 months, Apple has lost market share. Added about 300 bps. Key “China region.
Add to that initially expected sales of about 30 million units for the recently launched iPhone SE, and Ives thinks we’re seeing “the strongest product cycle for Cook & Company since 2015.”
In fact, given the recent “risk-off dynamic” of the market, tech equities were sold “indiscriminately across the board” without due consideration of their position. And with his checks indicating that digital transformation isn’t slowing down, but is actually gathering more steam, Ives believes that Apple is “setting up a monster growth cycle in the next 12 to 18 years that’s going to happen.” Not baked into the shares at current levels.”
To this end, the analyst reiterated an outperform (ie, buy) rating on Apple shares with a $200 price target. Implications for investors? Up 17.5% from current level. (To see Ives’ track record, Click here,
Most Wall Street analysts here agree; The stock has a strong Buy consensus rating based on 23 buys versus 5 holds. At $193.36, the average target suggests that shares will climb ~14% higher in the coming year. (See Apple Stock Forecast on TipRank)
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Disclaimer: The opinions expressed in this article are those of the featured analyst only. The content is to be used for informational purposes only. It is very important to analyze yourself before making any investment.
