Analysts still believe Apple’s stock is a safe haven in spite of a sticky macroeconomic climate


According to investment firm JP Morgan, the current macroeconomic conditions mean that Apple will face very modest short-term and medium-term risk.

In a note to investors obtained by AppleInsider, JP Morgan analyst Samik Chatterjee answers a few frequently asked questions about the impending June quarter earnings of Apple. In addition, he makes some forecasts about Apple’s short-and medium-term future.

Chatterjee continues to feel that Apple is a safe haven company for investors because of the robustness of its profit expectations in the face of a macroeconomic downturn. Even though he believes Apple’s current valuation could go down, he believes it will be limited.

In terms of Apple’s fourth and first quarters of 2022 and 2023, the analyst sees only a few risks. Accordingly, he has modestly raised his Apple forecasts for the third and fourth quarters of 2022.

Also read: Total of 248 patents have been applied for by Apple since 2000 relating to cars

The greater momentum and market share across Apple’s hardware product line, which will balance additional headwinds from a negative foreign exchange rate, are driving Chatterjee’s higher 2022 predictions, according to him.

As Chatterjee points out, “the slight adjustments to our projections are mostly driven by an increase in iPhone revenues.” “Our full-year prediction for FY22 sales has been raised from 247 million to 252 million units, notwithstanding the Russia withdrawal, due to the recent acceleration of momentum in China, in particular for iPhone demand.”

The expert believes that Apple’s iPhone 14 cycle could face increased risks in the medium future because of the current economic circumstances.

Due to the previously noted fluctuation in the value of the US dollar, the iPhone 14 could be more expensive in other countries. Chatterjee predicts that when high-end models become more and more out of reach for the average customer, there will be a shift in the market.

Based on the analyst’s assessment of the relatively weak competition from 5G device rivals as well as rising iPad and Mac market share, Apple is expected to be able to balance these medium-term risks going ahead.

In the 12-month period, the analyst maintains his $200 price target for Apple shares. Using his 2023 earnings projection of $6.64 as a benchmark, the forecast uses 30 times the stock’s current P/E ratio.

Also read: Mass production site at Chinese factory locked down seven days before iPhone 14 goes into production


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