Apple is in a good position to surprise Wall Street in 2022, creating a more than 15% upside for investors, according to Deutsche Bank.
The investment firm hiked its price target for Apple to $200 per share from $175.
Analyst Sidney Ho, who has a buy rating on the stock, said in a note to clients Monday night that the company was getting a handle on the supply chain issues that have hurt hardware production over the last two years.
“While we see supply chain constraints again being a headwind to revenue, we believe the supply chain has improved at a faster pace, with iPhone wait times shortening to only a few days, and that should be enough to drive a ‘beat-and-raise,’” Ho wrote.
The new price target is more than 15% above where Apple’s stock closed Friday. Shares fell 1.5% in premarket trading Tuesday.
Additionally, Apple may become more attractive as investors look for stocks that can withstand inflation, Deutsche Bank said.
“We think AAPL shares will benefit from a flight to quality in an inflationary environment,” the note said.
Like many other tech stocks, Apple has gotten off on the wrong foot in 2022. The stock fell 2.5% in the first two weeks of the year.