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Citi analysts reiterated a Buy rating and a $185 per share price target on Citi stock amid fears the company could underperform given the weakening consumer sentiment.
Analysts told clients in a note yesterday that he is “not fearful or concerned about Apple’s (NASDAQ:AAPL) upcoming earnings report on October 27, despite media and investor concerns.”
He remains positive on Apple stock mostly due to the following 5 reasons:
As far as the Q3 earnings report is concerned, the analysts note that FX is likely to offer “significant headwinds,” even worse than 600bps guided. Moreover, the analysts are also concerned about the slowdown in App Store revenue growth. Overall, the analysts’ estimates are below the Street.
“While our estimates are below consensus, we note buyside expectations have largely been trimmed. Shares now trading at ~1.4-1.5x relative PE, which we believe is reasonable given competitive moat, strong FCF generation, and balance sheet strength,” Citi analysts concluded.
