The risk-off in technology is drowning Apple Inc (NASDAQ: AAPL) with it this time. The stock is now down 23% year-to-date, which, as per a Neuberger Berman analyst, spells opportunity.
The bull case for Apple stock
Dan Flax remains bullish on the iPhone maker in the face of several headwinds, including supply constraints, China, and the broader consumer weakness. On CNBC’s “Squawk Box”, he said:
Developer conference is next month. We’ll have new iPhones later this year. They continue to execute well with new Silicon on Macs. Then there’s services and wearables. So, we see a lot of opportunity driven by innovation, health of the ecosystem and future growth.
A day earlier, Apple lost its crown as the world’s most valuable company to the oil giant Saudi Aramco. The American multinational now has a market cap of $2.30 trillion versus $3.0 trillion in early 2022.
Other reasons to stick to Apple Inc
According to the senior research analyst at Neuberger Berman, free cash flow and a diversified set of growth drivers calls for a higher multiple on the Apple stock. He noted:
We think shares are very attractive when you look at the FCF and the potential for FCF. What’s changed over the last several years is this broadening of the growth drivers. It’s not just about iPhone. So, I think a higher multiple is warranted.
Flax sees significant upside in AAPL, especially since the tech giant reported market-beating results for its fiscal Q2 late last month, despite a challenging operating environment.
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