Apple shares fall as Evercore lowers price target

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Apple ($NASDAQ:AAPL) shares fell on Tuesday after investment firm Evercore lowered its price target on the tech giant. Evercore analyst Amit Daryanani cited potential margin pressure and foreign exchange headwinds as risks to Apple’s earnings. “We continue to believe near-term risks are largely reflected in the stock,” Daryanani wrote in a note to clients. Apple shares have come under pressure in recent months on concerns about slowing iPhone sales growth. The PC market also remains weak, which could negatively impact Apple’s Mac sales. Still, Daryanani wrote that he remains bullish on Apple’s long-term prospects, citing the company’s strong cash position, growing services business, and potential for new product categories like augmented reality. “We continue to view Apple as a must-own core holding given its unique ability to generate material EPS growth despite a maturing iPhone business,” Daryanani wrote.

Market Reaction

So far news sentiment mostly are negative. This is likely due to the current global situation with the pandemic.

VI Analysis

As a company’s fundamentals reflect its long term potential, the fair value of its shares can be calculated by analyzing its financial statements. The VI Line app makes this analysis simple and easy to understand. Based on the app’s calculations, the fair value of an APPLE share is around $140.1. However, the stock is currently traded at $137.4, which represents a fair price that is undervalued by 2%.

Summary

Apple shares fell sharply on Wednesday after Evercore ISI cut its price target on the stock, citing concerns about iPhone demand. replacement rates,” Daryanani wrote in a note to clients. Daryanani said his checks with industry sources indicate that iPhone replacement rates in the U.S. have softened in recent months. He also said his checks indicate that Apple’s production cuts for the iPhone XR have been deeper than expected.