Apple has lost more than 20% this year, but Citi has six reasons to believe the tech giant’s stock will rise in 2023. “We believe demand for Apple’s products and services is strong. Apple is likely to remain stable through 2023,” analyst Jim Suva said in a note. third note. “We recognize that regulatory risk remains a major issue for equities, but we consider this to be more of a headline risk than a fundamental risk. Such headlines could trigger a dip. short-term stock price that we see as an opportunity to buy Apple stock.” Popular tech stocks, which outperformed the S&P 500 from 2019-2021, have been pressured by this year’s challenging macro environment. High inflation, recession fears, holiday manufacturing shortages have weighed on stocks. Suva said Apple isn’t the company’s top stock pick, but the company is maintaining its buy rating and $175 price target for the stock for six reasons: it will grow as storms Currency headwinds ease It is expected to launch a new product, the Apple AR/VR headset, in 2023. Negative impact from potential alternative app stores will be limited It hopes tech company to rake in more than $110 billion through buybacks and dividends Their sales are expected to grow sixfold by 2030. The company also currently has no stores in India but is opening several in Mumbai and New Delhi in the first quarter. Although services revenue has decelerated this year, Citi expects that any price hikes implemented in the previous quarter will be a major driver of revenue when they take effect in the upcoming quarters. The note also highlights regulatory risks, specifically recent reports that Europe may soon ask Apple to allow alternative app stores on its iPhones and iPads. “The Bears believe this will significantly reduce app store revenue in Europe (~25% of total revenue) as customers will choose cheaper versions of the same app,” said Suva. “. “In our view, there are a number of factors that could limit the impact of these out-of-store payment options,” including consumer behavior, out-of-store payment fees, and preference restrictions. discount offer. Suva also offers a “bonus option”: the long-term possibility that it will launch an Apple Car. “Entering the auto market is a matter of ‘when’, not ‘if’,” he said. – Michael Bloom of CNBC contributed reporting.