Apple Inc AAPL was the latest casualty of the tech wreck. The stock fell out of the $2 trillion club this week, but one analyst saw a resurgence on the horizon.
“This should be a $250 stock,” Loup Funds’ Gene Munster said Wednesday on CNBC’s “Squawk Box.”
What To Know: Apple acted as a safe haven for mega-cap tech investors for much of 2022, but the seemingly relentless market trend lower eventually swept the stock from its post.
Munster believed the near-term direction of Apple hinged on a combination of its December quarter results and March quarter guidance. Given Tesla Inc’s TSLA miss this week, it made sense that investors are concerned, Munster said.
“Companies that have been beating and exceeding are now missing numbers,” he said.
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Why It Matters: Apple was still Munster’s favorite stock to own for the long term and he believed investors could get “upbeat guidance” when Apple reports earnings.
Regardless of current demand trends, Apple consumers would eventually come back to upgrade, he said. Investors were also likely to award Apple with a higher multiple than it’s currently trading at, he added.
“This is debatably one of the world’s greatest companies,” Munster said.
Related Link: Apple Crossed The Whopping $3 Trillion Mark Exactly A Year Ago Today — Now, It’s Not Even In The $2 Trillion Club
Munster told CNBC Apple was on a path to $250 per share. He added there are some potential product releases expected in 2023 that could up his estimates.
“My optimism around where the stock can go ultimately is not based on that. I think that you can get even more upside based on the car or some mixed reality headset,” Munster said.
He noted an Apple Car or mixed reality headset release wouldn’t immediately add value, but over the longer term, he expected these launches to be big parts of Apple’s business.
“Yes this is going to be a tough year for EVs, but I think ultimately this is a massive market for Apple and it’s not baked into some of my prognosis about where this could ultimately go,” Munster said.
Related Link: Technology Stocks And EV Predictions For 2023: Gene Munster Sizes Up Apple, Tesla, Ford And More
AAPL Price Action: Apple has a 52-week high of $180.17 and a 52-week low of $124.17.
Apple shares are up 1.89% at $127.43 at time of publication Wednesday, according to Benzinga Pro.
Photo: courtesy of Apple.
