Apple has lost $450 billion in market capitalization since President Trump announced his reciprocal tariffs on Wednesday. Shares are now trading below $190 per share. Is it time to by Apple stock?
Frank DeMatteo for Investing.com:
This morning, matters took another turn after China retaliated with a 34% tariff on U.S. goods. So far, Trump hasn’t hit back with his promised hike for any country that retaliates against the U.S. tariffs. However, Trump said in response that “China played it wrong,” suggesting a raise could be forthcoming.
In a note to clients on Thursday Rosenblatt analyst Barton Crockett said he sees Apple facing a $40 billion tariff cost. This would equal a 32% hit to operating profit and EPS.
BofA Securities analyst Wamsi Mohan said if the tariffs stick and Apple absorbs the entire $20 billion of headwind and 500bps to GMs, they expect an impact of $1.24 to EPS… Mohan said that with a potential $1.24/share hit to EPS and 25x multiple, the lower end of the past 5-year range, they see downside risk in the stock to $180.
Morgan Stanley’s Woodring said that given that Apple could raise prices gradually, a bear case EPS hit may be down 10-15%. This suggests CY26 EPS of $7.19, versus the consensus of $8.19. Apply a trough multiple of 24x that gets you to a $172 stock.
