Opinions
Stan Wong
Apple Inc
AAPL-Q
TOP PICK
Apr 10, 2025
Stock price when the opinion was issued
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Doesn't mind nibbling here around $200. Lots of moving parts, and no one knows exactly how they'll play out. It is a laggard. Support is around $190-200. If you buy here, and it goes 5-10% lower, he'd look to exit. But if it pushes higher, and you're up 10%, he doesn't mind adding more.
Monday they host a Worldwide Developer's Conference and some have bid on the stock today based on that, up 1.64%. However, Trump wants Apple to build iPhones in the US, which is a serious problem and make Apple hard to own. However, maybe Apple can catch a break now that Elon Musk is drawing so much fire.
They held their developer's conference today, with no big news. As long as you didn't hear "switch" from that conference, then hold onto Apple. This has been dowgraded, but he thinks that downside will be limited. He's long been a believer in this name. The company has been in a dry spell, offering no new products, but it can always buy another company. Also, Apple could lose the Google or Epic case, but likely not both. Also, Apple never stands still; the CEO has been busy dealing with Trump (i.e. shifting production from China to India).
There is a lot of noise around it but it is one of the largest companies in the world, although not one of the leaders. It is one of the worst in the AI space. The fundamentals should do well but it might take a while for it to reach its 15% upside. She gives it a 3 out of 10 for valuation. It is a money making machine with most of the bad news priced in. She is starting to see some sells. If owned you could trim your position.
Premium contentAnalysts see AAPL continuing to advance its AI integration driven with a new chipset that they believe will fuel more device upgrades going forward. It trades at 25x earnings and supports a robust 138% ROE. Cash reserves are prudently being used to aggressively buy back shares and retire debt. We recommend setting a stop-loss at $150, looking to achieve $236 -- upside potential of 18%. Yield 0.5%
(Analysts’ price target is $228.26)Is -6% the past year and -19.7% this year, and has been trading sideways as the rest of tech has been roaring. The company last gave tepid guidance because of Trump (25% tariff on iPhones), and gave an adverse ruling against their app stores. The stock is out of favour, uncertain, but he will hold on. Past downturns have turned out to be buy opportunities. Trades at 28x PE, down from 35.5% at its peak last July. Their recurring service revenue now amounts to 25% of overall, and growing faster than all other businesses. AAPL has bottomed several times in recent years, bottoming at 25x PE, the last time in early April after tariffs, then quickly recovered. During the 2022 bear market, the PE plunged to 20x PE, then rebounded strongly. Since it bottomed at the start of 2023, shares rallied 93% of the time in the next 3 years. Meanwhile, the earnings growth is 14% projected this year, while the S&P is projected at only 9.4%. So, Apple deserves a premium, now trading at 28x PE vs. the S&P's 23x. Apple PEG ratio is under 2 while the S&P is 2.5, so if Apple had that PEG ratio, AAPL should sell at 35x PE and $250. Therefore, buy Apple at $180, too cheap to ignore, or 25x PE, but if it shares off the negativity, this should trade at 35x PE.
Tech leader, but beaten up badly due to tariff concerns. Down ~30% from recent highs. Iconic brand, strong cashflow, loyal customer base. Giant revenue generator. Services segment has very high margins, is expanding, with very stable revenue stream. That will cushion all the near-term uncertainties. Pricing power.
(Analysts’ price target is $239.68)Actively diversifying production outside of China. Wearables are part of the growthier area of the business. Right at the 200-week MA of long-term support. Pretty good medium- and long-term entry point. Solid balance sheet, disciplined capital allocation. Steady 15% earnings growth going forward. Yield is 0.52%.