Apple Inc (NASDAQ: AAPL) failed to woo its investors in the first half of 2021.
The stock climbed by 14% in the past three months, and yet its gain remained capped at 3% in the first half, compared to Nasdaq that jumped more than 12% over the six-month period.
Krish Sankar’s comments on CNBC’s “Squawk Box”
The underperformance, however, didn’t scare Cowen’s senior research analyst, Krish Sankar, who rated AAPL at ‘outperform’ on Thursday with a price target of $180. Commenting on the reasons why Apple has struggled in the stock market this year, he said on CNBC’s “Squawk Box:
“It’s a combination of factors. One is the rotation from growth stocks to value stocks seen this year. Second is that after massive outperformance last year, many people took the money off the table. And third is the overhangs related to recent lawsuits.”
Sankar acknowledged that the government is still anti-big tech that adds to the risk, but highlighted that the core iPhone business as well as Apple’s services segment has sufficient runway to drive stock growth in 2022 and beyond.
In related news, Microsoft joined Apple in the $2 trillion club last month.
Demand for iPhone remains strong in China
The expert also highlighted that the ongoing beef with China was unlikely to weigh on Apple’s performance as consumer demand remains robust in this key market for the iPhone manufacturer.
“In the past few months, demand for some of the Chinese smartphone brands like Oppo, Vivo, Xiaomi has taken a hit. But we haven’t seen any of that in the iPhone ecosystem yet. The data also suggests that in the last three consecutive months, Apple has gained incremental share in the smartphone market in China.”
Apple has slipped from $137 per share on Thursday morning to $136 per share at the time of writing. Earlier this week, the world’s largest company bought a spot in Roku’s remote control.
The post Here’s why Cowen’s analyst rated Apple Inc at ‘outperform’ appeared first on Invezz.
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