Apple will not escape an economic slump untouched. A stagnation in consumer costs and also recurring supply-chain challenges will certainly weigh heavily on the business’s June earnings record. However that does not mean investors should surrender on the stock price aapl, according to Citi.

” Regardless of macro problems, we continue to see several favorable drivers for Apple’s products/services,” composed Citi analyst Jim Suva in a study note.

Suva outlined five reasons investors need to look past the stock’s current delayed efficiency.

For one, he believes an apple iphone 14 model might still get on track for a September release, which could be a temporary catalyst for the stock. Other item launches, such as the long-awaited artificial reality headsets and also the Apple Vehicle, might stimulate investors. Those items could be prepared for market as early as 2025, Suva included.

Over time, Apple (ticker: AAPL) will certainly benefit from a consumer change far from lower-priced rivals towards mid-end and costs items, such as the ones Apple provides, Suva wrote. The company also could maximize expanding its solutions sector, which has the possibility for stickier, extra routine revenue, he included.

Apple’s current share repurchase program– which amounts to $90 billion, or around 4% of the company‘s market capitalization– will continue lending support to the stock’s value, he included. The $90 billion buyback program begins the heels of $81 billion in fiscal 2021. In the past, Suva has actually said that an accelerated repurchase program need to make the firm a more appealing investment and also aid raise its stock cost.

That stated, Apple will still require to browse a host of difficulties in the close to term. Suva forecasts that supply-chain problems might drive an earnings impact of between $4 billion to $8 billion. Worsening headwinds from the company’s Russia leave and fluctuating foreign exchange rates are also weighing on growth, he included.

” Macroeconomic problems or shifting consumer demand might cause greater-than-expected deceleration or contraction in the phone and also smartphone markets,” Suva composed. “This would negatively influence Apple’s leads for development.”

The expert cut his cost target on the stock to $175 from $200, however preserved a Buy ranking. Many experts continue to be favorable on the shares, with 74% ranking them a Buy and also 23% ranking them a Hold, according to FactSet. Only one expert, or 2.3%, ranked them Undernourished.

Apple was up 0.3% to $146.26 in premarket trading on Wednesday.