Dan Ives, Managing Director at Wedbush Securities, suggested that the recent decline in Apple Inc.'s (NASDAQ:AAPL) stock could be viewed as a buying opportunity. Speaking to CNBC, Ives attributed the stock's weakness to concerns about a sales slowdown in China, which he sees as a short-term challenge.
While acknowledging the current challenges, Ives expressed optimism about Apple's resilience, considering the company's track record. He particularly highlighted the potential of Apple's integration of artificial intelligence (AI), which has become a focal point in the tech sector.
In a social media post, Ives emphasized the strength of Apple's foundation, including a robust services ecosystem, a loyal customer base, anticipated iPhone upgrades, and the incorporation of AI technology. Despite the recent 2.8% drop in Apple's stock following reports of a 24% decline in iPhone sales in China, Ives views this dip as a buying opportunity.
The Chinese economic goals for 2024, revealed recently, did not meet market expectations, contributing to concerns about Apple's performance in the region. The slowdown in Chinese sales has been a significant challenge for Apple, exacerbated by restrictions on the use of Apple products by government employees.
Acknowledging that Apple appears to lag behind its U.S. tech counterparts in AI-related developments, Ives remains bullish on the company's long-term prospects. In contrast to the 12% decrease in Apple's shares in 2024, the Nasdaq composite has seen a 6.2% increase.
Wedbush Securities maintains a positive outlook on Apple, offering an outperform rating with a price target of $250, reflecting a potential 40% upside from current levels.
Paraphrasing text from "Investing" all rights reserved by the original author.
