After a good start to the year for technology stocks, Apple Inc. shares may represent a safe haven.
Piper Sandler could continue to see strong iPhone demand through 2022, according to analyst Harsh Kumar, and while some are concerned that PC and Mac demand will calm down after a pandemic-induced boom, expectations are already “tempered”. are gone.
Given the company’s prospects for the year ahead and the volatile technical background, he recommended on Friday that technology investors “view Apple as a ‘hiding place’ in the current environment.”
When it comes to the Apple story, “nothing counts like the iPhone,” he wrote, adding that this part of the business is well positioned for 2022. In the US, carriers continue to build out their 5G networks and offer subsidies on new phones, which could help drive demand. China represents another source of strength, and India has the potential to play an increasing role in the years to come.
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Looking at Apple’s statement more broadly, Kumar sees an opportunity for the company to become a major player in the healthcare and automobile worlds, eventually achieving a valuation of $4 trillion. (Apple is knocking on the door of a $3 trillion market cap, with shares reaching the required range in intraday trading in January, but failing to close at that level.)
“In healthcare, we see the Apple Watch continue to add more and more features with the goal of eventually offering a blood sugar monitoring system,” he wrote. For the automotive space, Apple is reportedly interested in developing a car. Such a project “makes sense”, in Kumar’s view, noting that the car represents a hardware platform on which Apple can sell its services.
Kumar raised his price target on Apple shares from $175 to $200, keeping the overweight rating.
Apple shares are down 0.5% in Friday afternoon trading. As the Dow Jones Industrial Average DJIA, they have advanced 19% over the past three months,
An increase of about 2%.