JP Morgan Analyst Still a Fan of Apple Shares

26 JULY 2022 - Another positive note on Apple headed into this week’s June-quarter earnings call. Acknowledging life #InThisEconomy, a piece from Apple Insider has JP Morgan analyst Samik Chatterjee arguing that Apple shares are the place to be.

We might characterize his note not as good news/bad news, but kind of good news against maybe not terrible news. Near term, he’s raised his expectations a tiny bit. Quoting his note:

The modest changes to our forecasts is primarily led by an increase to iPhone revenues… Recent acceleration of momentum in China in particular for iPhone demand [leads] us to raise our full-year FY22 volume forecast from 247 [million] to 252 [million] units, despite the headwinds from the Russia exit.

Past that is where things get muddy. While there are new iPhones coming pretty soon, foreign exchange headwinds may mute sales of the new units. Past that though, the piece says:

…the analyst still believes that Apple will be able to offset those medium-term risks because of relatively weak competition from 5G device rivals, as well as iPad and Mac market share increases.

According to Apple Insider:

Chatterjee still believes Apple is a safe haven stock for investors, given the resilience of the earnings estimates against the backdrop of macroeconomic deterioration. Although there's a chance for downside to Apple's current valuation, he expects the downside to be fairly limited.

That’s similar sounding to the recent Canaccord Genuity note, which argued that Apple’s current “share price is compelling for longer-term investors.” Mr. Chatterjee has a positive rating on Apple shares. He’s set JP Morgan’s price target on the shares at $200.