Apple is slated to report its Q1 FY’23 results on February 2, reporting on a quarter that saw the company contend with supply chain headwinds for its flagship iPhones.
At the current market price of $136 per share, Apple stock trades at just over 22x forward earnings, which we believe is reasonable given the company’s earnings growth prospects, and solid balance sheet. Apple should also handle a potential economic downturn better than its tech peers given its ecosystem lock-in, the high desirability of its products, and the ability to upsell to existing customers. We continue to remain bullish on Apple stock, with a $166 price estimate which is about 24% ahead of the current market price.
