14 DAY TRIAL // Apple shares fell another 1 percent on Tuesday to a record-low $176.51, pushing the company one step closer to the worst month of the year.
Shares of the iPhone maker fell no less than 11% this month alone and 25% since October when it reached an all-time high of $233.47, as per CNBC.
Citi analysts have set a price target for Apple stock of $205, explaining that the fluctuations are mostly the result of the trade war involving the United States and China.
Since most of the components that Apple uses on products like iPhone and MacBook are sourced from China, continuous trade concerns generate a somewhat constant instability in terms of stock price.
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But analysts believe the decline experienced by Apple is actually good news, as this is the best moment to purchase AAPL stock. In other words, the price is likely to jump at higher levels in the coming months, and this means the drop experienced this week is turning Apple shares into a very attractive buy.
“We do like Apple under 180 bucks as a long term investment,” analyst Mark Tepper of Streatgic Wealth Partners was quoted as saying by the cited source.
“Their deal with Qualcomm ensures they’re going to have that 5G phone next year, and we like their transition to more of the high-margin recurring revenue services businesses. So I would say at this price we like it.”
Meanwhile, the concerns regarding Apple’s relationship with China are also fueled by the uncertainty around Huawei, the Chinese tech giant that the United States banned from working with American companies earlier this month.
Experts believe the Chinese government could end up seeking revenge for the Huawei ban by imposing similar restrictions against Apple.
Tepper says the iPhones are “unlikely” to be banned in China, however, albeit anything can change overnight given the trade tension between the two countries.