Apple slips as Moness, Crespi, Hard cuts estimates, citing ‘towering inferno’ economy
10:03 AM | Apple Inc. (AAPL) | By: Chris Ciaccia, SA News Editor
Apple (NASDAQ:AAPL) slipped on Monday as investment firm Moness, Crespi, Hardt lowered its price target on the tech giant, noting the current economic environment is like a “towering inferno” and there will be a lot of “extraordinary forces” needed to avoid further destruction.
Analyst Brian White lowered his price target to $174 from $199, but still kept the firm’s buy rating, noting that Apple (AAPL) had a “powerful tailwind” during the pandemic, getting a boost of “unprecedented demand for Macs and iPads” and consumers purchased more of its goods and services.
White lowered his third-quarter estimates, with revenue going to $85.88B, down from $89.3B and earnings per share going to $1.24 from $1.32. He also lowered his full-year estimates, moving revenue to $397.52B from $408.6B and earnings per share to $6.20 from $6.44.
“With the reopening of the economy, the reversal of these forces was expected and contemplated in our model, along with the negative impact of supply chain challenges,” White wrote in a note to clients. The analyst added “other sinister headwinds” have come to light in recent weeks, including the downturn in the economy, rising inflation and a “precarious geopolitical environment.”