Apple will not get away a financial slump unscathed. A slowdown in consumer investing and recurring supply-chain obstacles will certainly weigh heavily on the company’s June earnings report. However that doesn’t mean capitalists ought to give up on the aapl stock quote, according to Citi.

” Regardless of macro woes, we remain to see several positive drivers for Apple’s products/services,” wrote Citi analyst Jim Suva in a research study note.

Suva laid out 5 reasons capitalists need to look past the stock’s current lagging efficiency.

For one, he believes an iPhone 14 model can still get on track for a September launch, which could be a temporary driver for the stock. Various other product launches, such as the long-awaited artificial reality headsets and also the Apple Car, can stimulate financiers. Those products could be prepared for market as early as 2025, Suva included.

In the long run, Apple (ticker: AAPL) will certainly gain from a customer change away from lower-priced rivals towards mid-end and costs items, such as the ones Apple provides, Suva composed. The firm additionally could profit from increasing its solutions section, which has the possibility for stickier, much more routine earnings, he included.

Apple’s current share redeemed program– which totals $90 billion, or about 4% of the firm‘s market capitalization– will certainly continue lending support to the stock’s worth, he included. The $90 billion buyback program comes on the heels of $81 billion in fiscal 2021. In the past, Suva has argued that an accelerated repurchase program should make the business a much more eye-catching financial investment as well as aid lift its stock price.

That stated, Apple will still require to browse a host of obstacles in the close to term. Suva forecasts that supply-chain problems could drive an earnings impact of between $4 billion to $8 billion. Worsening headwinds from the firm’s Russia leave as well as varying foreign exchange rates are also weighing on development, he included.

” Macroeconomic problems or moving consumer demand could cause greater-than-expected slowdown or contraction in the mobile and smartphone markets,” Suva created. “This would adversely affect Apple’s prospects for growth.”

The analyst trimmed his rate target on the stock to $175 from $200, but preserved a Buy rating. Many analysts remain favorable on the shares, with 74% score them a Buy as well as 23% ranking them a Hold, according to FactSet. Only one analyst, or 2.3%, rated them Underweight.

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