Apple won’t get away a financial downturn untouched. A slowdown in customer spending and recurring supply-chain obstacles will certainly weigh heavily on the company’s June earnings report. However that does not mean financiers should surrender on the aapl stock forecast, according to Citi.

” In spite of macro issues, we continue to see a number of positive drivers for Apple’s products/services,” wrote Citi expert Jim Suva in a study note.

Suva detailed five reasons investors need to look past the stock’s recent lagging performance.

For one, he thinks an iPhone 14 design can still be on track for a September release, which could be a short-term driver for the stock. Other product launches, such as the long-awaited artificial reality headsets and the Apple Vehicle, might energize financiers. Those items could be all set for market as early as 2025, Suva included.

In the long run, Apple (ticker: AAPL) will gain from a customer shift away from lower-priced rivals towards mid-end and costs products, such as the ones Apple supplies, Suva composed. The business also might take advantage of broadening its services segment, which has the possibility for stickier, much more routine income, he included.

Apple’s current share repurchase program– which amounts to $90 billion, or about 4% of the company‘s market capitalization– will certainly continue lending support to the stock’s value, he added. The $90 billion buyback program comes on the heels of $81 billion in fiscal 2021. In the past, Suva has argued that an increased repurchase program need to make the firm a much more attractive financial investment as well as help lift its stock price.

That claimed, Apple will still require to navigate a host of obstacles in the near term. Suva anticipates that supply-chain troubles could drive an earnings impact of in between $4 billion to $8 billion. Worsening headwinds from the firm’s Russia departure and rising and fall foreign exchange rates are also weighing on growth, he included.

” Macroeconomic problems or shifting consumer demand can create greater-than-expected slowdown or contraction in the phone and mobile phone markets,” Suva composed. “This would adversely influence Apple’s prospects for growth.”

The expert cut his rate target on the stock to $175 from $200, yet preserved a Buy rating. Most experts stay favorable on the shares, with 74% rating them a Buy as well as 23% score them a Hold, according to FactSet. Just one analyst, or 2.3%, rated them Underweight.

Apple was up 0.3% to $146.26 in premarket trading on Wednesday.

Good Reasons Apple Stock Is Continue To an Acquire, Basing On to Citi