According to Wedbush, investors should trust Apple as a must-have tech stock despite its recent troubles. Analyst Dan Ives, who has a better review of the tech giant, writes that Apple is “a compelling name to own and weather the market storm”. Apple has long been considered one of the safest names in tech, but it has struggled in recent weeks. In May alone, the company’s stock has fallen nearly 13%, and some traders have warned that the stock could slide even further. Apple’s struggles come as the S&P 500 index begins to emerge in a bear market, down about 19% from its record. The installed base is key to Apple’s success navigating this storm, Ives writes. With an unparalleled install base of 1 billion iPhones worldwide and 1.8 billion iOS devices for Cupertino, here’s next. Continuity is Apple’s unique advantage over other tech companies,” Ives wrote. Wedbush maintains its price target at $200 per share, 45% above Thursday’s closing price. Ives said that investors are getting too worried about the impact of the Covid lockdown in China on Apple’s business, which should help the stock bounce back. For now, we believe iPhone demand is growing better than expected (despite the various supply issues that have plagued Apple and the rest of the tech sector) and is trending better than management guidance this quarter.”
