Deutsche Bank Drops Apple Target to $175 on Macro Concerns

15 JUNE 2022 - News that really shouldn’t come as a shock: A piece from Barron’s (via Apple News+) says Deutsche Bank analyst Sidney Ho has cut his price target on Apple shares by $25.

It’s not Apple. It’s the planet. While ticker symbol AAPL has done as well as or better than most stocks like it, “he thinks macro uncertainty could continue to weigh on investor sentiment,” according to Barron’s. In a note to clients, Ho wrote:

Considering the macro environment (rising interest rates, slower consumer spending, and continued geopolitical uncertainties) in the past 1+ month, we do think risk to our estimate is to the downside, and we would not be surprised to hear more chatters about Apple cutting orders…

The analyst says he will be watching “demand trends, including global GDP growth and inflation and China’s Covid-19 lockdowns.” Special interest on Apple’s supply chain, which the analyst thinks “will be a key factor to watch ahead of results for the coming quarters.”

All of that said, he still likes the stock. Ho has a “Buy” rating on Apple shares. His price target on the shares is lower though - dropped from $200 to $175. With Apple currently trading at ~$132, the lowering of more targets would not be surprising.