- Citi analyst Jim Suva saw "several positive drivers" for Apple Inc's (NASDAQ:AAPL) products and services despite geopolitical risks and consumer spending concerns.
- Suva saw the iPhone maker declare a buyback of $80 billion - $90 billion while increasing its dividend by 5% to 10% during Q2 results. Apple still had cash of over $200 billion on the balance sheet and authorization to purchase up to $315 billion of stock.
- While supply chain headwinds are likely to linger, Apple's demand is driven by a mix shift away from lower-priced Android phones towards the more mid-end and premium pricing products.
- Also Read: Here's How Analysts View Apple's Latest Products, Services
- He snubbed Apple's news of production cuts, given that Apple tends to overshoot on build estimates to ensure sufficient supply.
- He saw the news of production cuts as headline risks providing a near-term stock pullback that investors could use as buying opportunity for Apple.
- He believes Apple's current market value does not reflect new product category launches like virtual reality headsets and an Apple Car in 2025.
- Suva kept a Buy rating on Apple with a $200 price target (20.7% upside).
- Price Action: AAPL shares traded higher by 1% at $167.40 on the last check Tuesday.
- photo by 13howard bouchevereau via Unsplash
