Apple Inc. (NASDAQ:AAPL) was one of the most-watched closely watched stocks in the market, and on Monday, Apple shares rose 9.31% to $298.81 after it was given an upgrade by a Wall Street analyst. On Monday, the tech giant’s stock soared after Andrew Uerkwitz of Oppenheimer raised the rating on the Apple stock and upgraded it to ‘outperform.’
The analyst stated that the Apple stock had been ‘oversold’ last week in the middle of the panic regarding the coronavirus epidemic. Hence, he argued that the stock could be on its way to making a comeback. The markets had been incomplete turmoil last week after cases of coronavirus were discovered in countries outside China.
Recovery from the Oversold zone
However, in this regard, it needs to be pointed out that experts have been warning about a macroeconomic slowdown due to the epidemic. As a matter of fact, Apple had already announced some time back that its performance in the first quarter is going to be affected by the outbreak, and hence, it is going to miss its projections.
The epidemic has disrupted the company’s supply chain and is making it difficult to manufacture iPhones to the fullest capacity. However, Uerkwitz believes that Apple is going to prove to be far more resilient than its peers.
He went on to add that Apple’s strong balance sheet will also help the company in navigating the situation far more effectively. However, more importantly, Uerkwitz stated that the coronavirus epidemic is going to be a short term affair, and whatever sales Apple loses is expected to be made up later on.
In order words, the company is going to lose out on sales but is not going to lose customers altogether. The company is generally resistant to competition, and hence, the analyst has stated that the dip in sales is only going to be temporary in nature. Oppenheimer set the target on the Apple stock at $320 per share.