Apple Inc (NASDAQ: AAPL) has had an unusually poor 2022 but the coming year will be one of strength, says Jim Suva. He’s a Senior Analyst at Citigroup.
Suva’s bull case for the Apple stock
Suva expects wage growth in India to drive significant upside for the tech behemoth in 2023. More importantly, he does not expect a consumer slowdown to meaningfully hit iPhone sales.
Many believe that strong growth seen in iPhones over the past two years will see sharp declines ahead as macro inflationary pressures take a bite out of consumer spending. We don’t believe this is the case.
The multinational is reportedly only months away from unveiling its AR/VR headset, which, as per the Citi analyst, will be another catalyst for the Apple stock in 2023.
For the year, shares of the iPhone maker are down more than 25% at writing.
What else could help the Apple stock?
Suva is also convinced that services growth will pick up moving forward following four consecutive quarters of decline. He sees regulatory risks attributed to its App Store in Europe as overblown as well.
While the December quarter is constrained by supply (China Covid closures impacting production), we believe demand for Apple’s products and services is likely to remain resilient throughout full year 2023.
According to the Citi analyst, Apple will spend north of a $100 billion on shareholder returns in the coming year that will further boost its share price.
He recommends buying Apple stock and sees upside in it to $175 – more than a 30% increase from here.
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