Apple $AAPL Stock Citi Says Investors Oversold, Sweet Chart Setup

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Citi analysts have said that investors have overreacted in selling AAPL stock, implying the stock is an excellent buy right now after Apple beat its Q1 2022 EPS and revenue. The stock chart of AAPL looks like a sweet swing long setup.

Citi says investors too negative on Apple shares, keeps $200 target

On January 28, 2022, Citi analyst Jim Suva kept a Buy rating on Apple with a $200 price target following last night’s Q1 results. Investors are too pessimistic on Apple shares and view it as a COVID beneficiary that will see demand fall off as society eventually returns to more normalcy, Suva tells investors in a research note. However, demand for Apple products and services is “materially outpacing supply,” and when the supply chain normalizes, Apple’s sales and margins will only accelerate higher, says the analyst. Suva is “materially increasing” his financial model but keeping the $200 target price as he decreased his price-to-earnings valuation multiple from 32-times to 30-times, given the market shift toward lower multiples.

Apple price target raised to $220 from $200 at Deutsche Bank

On January 28, 2022, Deutsche Bank analyst Sidney Ho raised the firm’s price target on Apple to $220 from $200 and kept a Buy rating on the shares. The analyst is impressed with Apple’s “strong” Q1 results, particularly on the iPhone and Mac side, which he says should help alleviate some investor concerns about adopting the iPhone 13 family and a slowing PC market.

Apple price target raised to $169 from $145 at Barclays

On January 28, 2022, Barclays analyst Tim Long raised the firm’s price target on Apple to $169 from $145 and kept an Equal Weight rating on the shares. Apple beat fiscal Q1 revenue estimates, with better iPhone and Services revenue, offsetting weak iPad, which were impacted by legacy node chip shortages, Long tells investors in a research note. The analyst says Q2 revenue is expected to be above seasonal and have year-over-year growth with less severe supply chain pressure. He views the guidance as “solid.”

Apple saw record results in most categories, says Piper Sandler

On January 27, 2022, Piper Sandler analyst Harsh Kumar keeps his Overweight rating and $200 price target on Apple and raises his FY22 EPS view to $6.14 from $5.82, and FY23 EPS view to $6.53 from $6.42 after its Q1 earnings beat. The company delivered record Q1 results across most categories despite the global supply constraints. He expects “strong” 5G iPhone penetration to drive the install base higher along with improving supply shortages in Q2, the analyst tells investors in a research note.

Apple Reports First Quarter Results

Apple reported a Q1 EPS of $2.10 versus the consensus estimate of $1.89. The company reported Q1 revenue of $123.9B versus the consensus estimate of $118.66B.

“This quarter’s record results were made possible by our most innovative lineup of products and services ever,” said Tim Cook, Apple’s CEO. “We are gratified to see the response from customers around the world at a time when staying connected has never been more important. We are doing all we can to help build a better world — making progress toward our goal of becoming carbon neutral across our supply chain and products by 2030 and pushing forward with our work in education and racial equity and justice.”

“The very strong customer response to our recent launch of new products and services drove double-digit growth in revenue and earnings and helped set an all-time high for our installed base of active devices,” said Luca Maestri, Apple’s CFO. “These record operating results allowed us to return nearly $27 billion to our shareholders during the quarter, as we maintain our target of reaching a net cash neutral position over time.”

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📉 AAPL Stock Technical Analysis

Aapl Stock

The stock had a bullish candle over candle reversal with a bullish Pocket Pivot signal. The long and short-term trends are both neutral. AAPL is part of the Technology Hardware, Storage & Peripherals industry. There are 36 other stocks in this industry. AAPL outperforms 83% of them. AAPL is currently trading in the upper part of its 52-week range. The market is still in the middle of its 52-week range, so AAPL slightly outperforms the market at the moment.

There is a support zone ranging from 159.21 to 165.86. This zone is formed by a combination of multiple trend lines and important moving averages in multiple time frames. There is support at 154.01 from a trend line in the daily time frame. Finally, there is a support zone ranging from 142.45 to 142.75. This zone is formed by a combination of multiple trend lines in multiple time frames.

There is a resistance zone ranging from 179.45 to 182.02. This zone is formed by a combination of multiple trend lines in multiple time frames.

AAPL has an average technical rating and it also does not offer a high-quality setup at the moment. AAPL stock has a Setup Rating of 2 out of 10. Prices have been extended to the upside lately. For a nice entry it is better to wait for a consolidation. Click here to sign up for email alerts on when AAPL stock consolidates and has a Setup Rating of 8 or higher.

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