Investors should take the opportunity to buy Apple Inc (NASDAQ:AAPL) shares while the broader market is taking a harsh view of the iPhone maker, that’s the view of California-headquartered stockbroker Wedbush.
Apple shares softened, losing US$6.50 or 3.4% per share on Friday, after the company reported a 1% decrease in total revenue to $81.8 billion for the quarter ending in June, marking the third consecutive year-on-year decline.
However, these figures slightly surpassed Street forecasts of US$81.7 billion. Underwhelming hardware sales also contributed to the tepid market reaction. The most significant drop was seen in iPad sales, which plummeted by 20%, while iPhone sales dipped 2.4%. Wearables sales, however, managed a 2.4% increase.
Despite rising profits and digital services clients surpassing one billion globally, the market appears spooked over falling revenues at the Silicon Valley behemoth.
Adding to general malaise, the selling sees Apple’s valuation drop back beneath the US$3 trillion threshold.
Wedbush analyst Daniel Ives, meanwhile, sees a buying opportunity especially as he looks ahead to next month’s new iPhone launch.
“Apple gave conservative headline September guidance as this is all about the drumroll to the main event with the anniversary iPhone 15 launch slated for the mid-September timeframe,” Ives said in a note.
“Most importantly, iPhones and Services will accelerate in the June quarter with the softness all Mac and iPad driven (tough yoy comps, supply issues, product launches) which are background noise to us.
“When excluding FX and focusing on the hearts and lungs iPhones and Services, this was a strong performance and guidance in our view and we would be strong buyers on any weakness.”
Wedbush rates Apple as ‘outperform’ with its price target of US$230.00 versus the prevailing market price of around US$185.48.