Tencent technology news, according to foreign media reports, JPMorgan Chase, the investment company, lowered the target price of apple stock to $335, because the new crown virus epidemic and store closure are expected to have a greater impact on Apple's profits than previously predicted.
Jpmorgan expects the closure to disrupt demand in the second quarter, due to testing problems,
As a result of the continuing effects of the coronavirus pandemic, JPMorgan analyst Sammyke Chatty (Samik Chatterjee) is adjusting his response to
The analyst, who assumes that all Apple retail outlets outside Greater China will reopen in mid May, lowered Apple's sales forecast from 33 million to 15 million. An internal memo from Apple had suggested that the company would reopen some stores in April.
This is largely due to the closure of Apple's retail stores before closing
The financial investment firm also considered the fall
iPhone overall sales are expected to fall by 10% compared with the same period last year. This is based on the latest sales estimate of 175 million units throughout 2020. Mr. Chatterjee added that the decline in second-quarter sales could be driven by fourth-quarter growth
J.P. Morgan still expects physical sales this year, given Apple's historical reliance on in-store sales outside the Chinese market
In his last study, Chatterjee also predicted that Apple's sales would suffer some disruption, though not as much as he now predicted. He then insisted that the company would maintain a strong momentum of development and basically recover in 2021.
The analyst still believes there is room for upside in several areas of Apple's business, including switching to services, growth in the installation base, technology leadership and options around capital deployment
Chatterjee has cut apple's target price from $350 to $335, based on a $16.75 per share earnings forecast and a 20 times comprehensive profit and earnings ratio. 16 times for iPhone, 11 times for Mac and iPad, 25 times for service, 20 times for airpods and apple watch, and 11 times for other products. (Tencent technology reviser / LE)