Apple: iPhone concerns, Canaccord still a buyer, but cuts TP

(CercleFinance.com) - On Tuesday Canaccord Genuity reiterated its buy recommendation, along with its target price of 200 dollars for the stock (closing price yesterday about $150, +1.
5%), although reduced its earnings forecasts on the American technology giant.

In its morning comments, the broker explained that demand for the iPhone remains strong, but that the "zero Covid" policy in China should affect the supply of devices.

Considering that Covid-19 restrictions in China are affecting the iPhone 14 Pro and Pro Max assembly plants, we expect demand to outstrip available supply in the quarter ending in March," the Canadian broker says.

While analysts expect demand to remain strong and most of the sales that failed to materialize in the quarter ending in December to carry over to the quarter ending in March as product availability improves, we anticipate sales losses in limited quantities, they say.

As a result, the broker has reduced its EPS estimates for 2022/2023 and 2023/2024 $5.82/6.87 to $5.73/6.53, respectively.


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