Apple's upcoming iPhone 14 smartphones will launch in a challenging economic climate, says a Wall Street analyst who lowered his price target on Apple stock on Monday.
Monness Crespi Hardt analyst Brian White reiterated his buy rating on Apple stock but cut his price target to 174 from 199.
On the stock market today, Apple stock dropped 1.5% to close at 144.87.
"With a weaker economy and inflationary forces eating into budgets, consumers may be more apprehensive about buying Apple's upcoming iPhone innovation in the fall, possibly waiting until this economic inferno has passed before making such a purchase," White said in a note to clients.
Apple Stock News: iPhone 14 Launch Ahead
Analysts expect Apple to introduce its iPhone 14 series handsets in September. But the launch faces a host of challenges, including weak consumer spending, White said.
Most Trusted Financial Companies — Take A Survey And Win A $50 Amazon Gift Card
"Apple's portfolio has never been stronger and its platform more ubiquitous; however, the economy appears to be in a recession, regulatory headwinds persist, equity markets are in turmoil, and the geopolitical landscape is daunting," White said.
White trimmed his sales and earnings estimates for Apple for the June quarter and its fiscal year ending in September.
In addition to weak consumer spending, Apple is combating "a sharp downshift in the economy, disruptive inflationary pressures, and a precarious geopolitical environment," White said.
Apple Stock In Consolidation Pattern
Apple stock has been consolidating for the past 27 weeks with a buy point of 183.04, according to IBD MarketSmith charts. That buy point is 10 cents above its all-time high reached on Jan. 4, based on IBD trading guidelines.
However, Apple stock could offer some aggressive, early entries within the consolidation pattern. Keep track of updates in IBD's Stock Market Today coverage.
Apple stock has an IBD Composite Rating of 80 out of 99, according to IBD Stock Checkup. IBD's Composite Rating is a blend of key fundamental and technical metrics to help investors gauge a stock's strengths. The best growth stocks have a Composite Rating of 90 or better.
Follow Patrick Seitz on Twitter at @IBD_PSeitz for more stories on consumer technology, software and semiconductor stocks.
