Wells Fargo: Buy Apple stock on weakness

Apple stock continues to underperform the market, but one Wells Fargo analyst recommends buying the dip ahead of some potential positive catalysts, even if shares fall after its Q224 earnings release after market close on Thursday, May 2nd.
Angela Palumbo for Barron’s:
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Apple stock has fallen 14% so far this year while the S&P 500 has gained 4.1% as analysts have concerns over the company’s struggles in China, a lack of clarity over new general artificial intelligence projects, and competition with lower priced offerings. Shares have dropped for each of the last five trading days alone.
Wells Fargo analyst Aaron Rakers has chosen to remain bullish on the stock despite its recent underperformance, and wrote in a research note Monday that investors should “consider buy on weakness,” even if shares drop after the company reports second-quarter earnings on May 2.
“Confidence in Apple’s GenAI strategy could be a positive catalyst,” Rakers wrote. The company is expected to deliver updates on its generative AI projects at the Worldwide Developers Conference, or WWDC, on June 10.
Rakers rates Apple as Overweight with a $225 price target, which implies a 35% increase from the stock’s closing price on Friday.

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MacDailyNews Take: While we continue to dream of some sub-$150 goodness, may Aaron’s $225 AAPL price target come to fruition sooner than later!
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