© Reuters. JPMorgan cuts Apple (AAPL) numbers again on likely weaker iPhone Christmas sales
By Senad Karaahmetovic
JPMorgan analysts maintained an Overweight rating on Apple (NASDAQ:) stock but lowered the price target by 5% to $190 per share.
The lowered price target reflects moderated expectations for the December quarter as Apple continues to face supply chain challenges in China. This marks the second time in just two months that the analysts lowered their estimates on Apple stock.
“We continue to see the supply shortfall continuing through year-end and impacting the typical seasonal uptick in iPhone volumes seen in Dec-Q. Thus, we are moderating our iPhone 14 Pro / Pro Max shipment forecast again in the Dec-Q,” they said in a client note.
The analysts lowered estimates for iPhone sales by 4 million in aggregate after an 8 million cut in November. Still, they believe Apple will be able to recover some lost units in the March quarter.
“We again expect the impact to estimates for FY23 overall to be more modest as we anticipate part of the shipment shortfall in the Dec-Q to be made up in the Mar-Q with supply constraints easing up in the lower production months and only a modest impact to demand given the historical precedent for Apple consumers to wait through a delay,” they added.
Morgan Stanley and UBS analysts lowered their price targets on Apple stock in November, citing supply chain issues.
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