JPMorgan, a major investment firm is at it again as it has made another major announcement, which is not good news for Apple shareholders.
Once again, the analysts at JPMorgan have made changes to the status of Apple on their end, causing a dip in the company’s share prices.
The investment giant based in the United States has been coming up with one forecast after another for Apple which has become a negative factor.
JPMorgan has recently shared its concerns over the supply chain disruptions Apple may face during the Christmas period. This would eventually impact the sales of the largest tech company in the entire world.
Apple’s Shares were Active on Tuesday
The analysts at JPMorgan made changes to Apple’s share price target in light of the company’s ongoing supply chain issues.
As a result, Apple shareholders were quite active in the stock markets on Tuesday. They were actively trading shares for Apple as they wanted to save themselves from upcoming losses.
The shareholders were readjusting their investments in multiple stocks that revolved around the share price target shared by the JPMorgan analysts.
According to the latest reports, the analysts at JPMorgan have cut down on the price targets for Apple shares. They cited the upcoming supply chain disruptions that may impact the company’s sales.
In a note circulated among the investors at JPMorgan, the company may end up taking a hit to its quarterly plus annual earnings.
This would eventually cause the share prices for Apple to take a negative hit once it reveals its earnings for the respective quarter. Therefore, the investors have already started to make their move.
Share Price Target Cut by $10
As per the analysts at the investment giant, Apple’s sales outlook during the Christmas period is not looking bright.
Therefore, the analysts at the investment firm have clipped the share price target for Apple by $10 for the respective quarter.
The decision was made by the senior analyst at Samik Chatterjee, who circulated an investor note for their clients sharing his thoughts on Apple’s stocks.
The share price target for Apple at JPMorgan had been set to $200 per share. However, Chatterjee reduced the target by $10, bringing it lower to $190 per share.
Despite lowering the share price target, Chatterjee has not changed the stock rating, keeping it “overweight”.
Caution by Chatterjee
According to Chatterjee, he was forced to make the decision after looking at the situation of China, which is still fighting COVID-19.
The country has been trying to deal with the situation but it may take time to fully deal with the matter. Due to the business districts of China being under lockdowns, Apple is definitely going to face supply chain issues.
The Chinese production houses have been down due to the lockdowns and the same situation is with the assembling plants. Apple is currently facing a major problem and it is going to impact its December sales.
Chatterjee warned that as per his analysis, there is a high possibility for Apple to lose around 4 million iPhone sales during the Christmas period.
JPMorgan Keeps Cutting Apple’s iPhone Production Target
JPMorgan had made a change to Apple’s iPhone production target, reducing it by 6 million. The investment giant had made another reduction prior to the 6 million.
At that time, the analysts had reduced the production count by 3 million. In total, JPMorgan cut 9 million from their initial prediction for iPhone productions in the respective quarter.
The company had cited the same (Chinese COVID) reason when cutting down on the production targets. JPMorgan predicted that the majority of the disruptions would be for iPhone 14 Pro Max and 14 Pro devices.
After the announcement, Apple’s shares were seen moving downward, having experienced a 0.17% dip. At the time of writing, Apple’s shares are worth $85.93 per share.