The Sino-American trade dispute and near-term developments could prove to be a "major swing factor" for Apple Inc. (NASDAQ: AAPL), according to Wedbush.
A trade resolution at the upcoming G-20 summit between the U.S. and Chinese governments could translate to Apple's stock moving higher by $20 to $25 per share in the coming months, Ives said in a Thursday note. (See his track record here.)
A resolution would remove a "dark cloud" hovering over Apple's stock, which currently reflects a long-term risk to Apple's numbers and the potential for growing nationalism in China that boosts demand for local smartphones at the expense of the iPhone, the analyst said.
The trade dispute and corresponding supply chain tariff disruptions could impact Apple's earnings power by 10% to 15% over the coming years, Ives said, adding that Apple has become the "poster child" for the trade dispute, right or wrong.
The Street's sentiment may be more negative than how the trade tensions will ultimately play out, implying a "compelling" risk-reward profile for Apple, the analyst said.
Apple appears to be the "most safe" company among the FAANG group in terms of antitrust sentiment and potential regulatory changes at the government level, according to Wedbush.
Apple shares were down 0.73% at $192.74 at the close Friday.
Legal Expert Breaks Down Antitrust Risk For Big US Tech Stocks
Analysts: China Isn't Targeting Apple In Trade War
Photo by Daniel Lu/Wikimedia.
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|Jun 2019||Initiates Coverage On||Outperform|
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