Apple stock (AAPL) is about to end one of its worst quarters. As of December 28, the stock was trading with 30.8% QTD (quarter-to-date) losses against 18.2% value erosion in the NASDAQ Composite Index (QQQ)(DIA)(XLK) and the 14.6% drop in the S&P 500 benchmark (SPY). On a QTD basis, Apple’s peers Microsoft (MSFT) and Amazon (AMZN) have seen 11.5% and 27.0% value erosion, respectively. Due to the broader-market rebound, AAPL staged a steep recovery of about 7% on Wednesday after losing 11.6% in the previous four sessions. Today, Apple investors got a reason to celebrate as D.A. Davidson expressed its optimism about Apple’s recent plan to assemble high-end iPhones in India.
Research firm sees ~80% upside potential
According to a CNBC report, D.A. Davidson has reaffirmed its “buy” ratings on Apple stock with a target of $280, reflecting about 79.3% from Thursday closing. The research “firm points to the stock’s pullback, reports of new manufacturing within India, and planned moves to mitigate the effect of tariffs.”
This update from D.A. Davison come about two weeks after it cut its target price on Apple from $290 to $280. Back then, the research organizations warned “that unit sales in the near term we’re probably lower than it had initially expected,” Bloomberg reported.
On Thursday, a Reuters report suggested, citing an unknown source, that “Apple Inc will begin assembling its top-end iPhones in India through the local unit of Foxconn as early as 2019.” Foxconn is a contract manufacturer (IYW)(IWF) from Taiwan, and the report says that it “will be assembling the most expensive models, such as devices in the flagship iPhone X family” in India. Foxconn already produces phones in India for the Chinese manufacturer.
Today at 2:55 PM ET, Apple stock was trading with 1.4% day gains.