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Bank of America cuts Apple price target on headwinds from China lockdowns

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Bank of America cut its price target on Apple ahead of its third-quarter earnings results, citing headwinds like China lockdowns and a strong U.S. dollar.

Video Transcript

SEANA SMITH: All right, my play today is Apple. Bank of America cutting its price target on the tech giant from 200 to 185, noting, quote, "significant incremental headwinds" from the strong US dollar, estimated that it is a 5% year over year headwind. Weaker demand in China related to COVID lockdowns also a challenge for Apple going forward. The move coming ahead of Apple's results later this week.

And Dave, a couple of things to keep in mind as we do head into those results. Speaking about inflation, Apple could really be-- could see a huge impact if people aren't as willing to spend, especially on some of those higher ticket items that they do sell. That, of course, could be bad news here for Apple.

DAVE BRIGGS: It seems unavoidable, doesn't it, given all the dynamics we've seen in the retail sector and the consumer and sentiment. And last time we heard from Tim Cook at April, it was largely a supply issue because of those lockdowns in China. And expect that to shift to a demand issue as, yeah, we all begin to pull back a little bit. Want to look way down the road.

CarPlay is the reason I'm always bullish on this stock, I think, as they become more integrated in our lives, which is hard to imagine because we go from our laptop to our cell phone. But now we're going to go into our cars soon a couple of years down the road, and they will be fully integrated into our lives. Bullish on Apple myself.