Apple's earnings hit from new tariffs is 'manageable' so buy the dip: Bank of America

  • 📰 CNBC
  • ⏱ Reading Time:
  • 62 sec. here
  • 3 min. at publisher
  • 📊 Quality Score:
  • News: 28%
  • Publisher: 72%

South Africa News News

South Africa South Africa Latest News,South Africa South Africa Headlines

Bank of America Merrill Lynch reiterated its buy rating for Apple.

Bank of America estimated that the impact of the tariffs will shake out to a drop of between 50 cents and 75 cents per share in annualized earnings.

"In the broader context of the tailwinds that AAPL has we view this as a relatively small amount over the next several quarters and would use the pullback as an especially attractive opportunity to buy shares of Apple," the note said.

President Donald Trump announced on Thursday that his administration will impose a 10% tariff on additional $300 billion of goods imported from China. Though it is unclear exactly which goods will face these new tariffs, Apple sent a letter tothat putting tariffs on a fourth list of products worth $300 billion would include nearly all of the company's products.

Bank of America estimated that the impact of the tariffs will shake out to a drop of between 50 cents and 75 cents per share in annualized earnings for Apple. "In the broader context of the tailwinds that AAPL has we view this as a relatively small amount over the next several quarters and would use the pullback as an especially attractive opportunity to buy shares of Apple," the firm said.2.16% lower on Thursday following the announcement of new tariffs. Bank of America has $240 price objective for the stock, representing roughly a 15% premium from its closing price on Thursday.

 

Thank you for your comment. Your comment will be published after being reviewed.
Please try again later.

Constant falling Revenue all year, an extremely overpriced iMac Pro that no computer-literate or bill-paying person would ever buy, multiple sub-par phone releases in one year, now tariffs... Sure, 'manageable'... About as manageable as a fire in a lake of gasoline

apple sucks

We have summarized this news so that you can read it quickly. If you are interested in the news, you can read the full text here. Read more:

 /  🏆 12. in ZA

South Africa South Africa Latest News, South Africa South Africa Headlines

Similar News:You can also read news stories similar to this one that we have collected from other news sources.

Apple Q3 2019 Earnings: A Tale of Two ApplesApple appears to be doing well…if you overlook the fundamental part of its business, the iPhone, which is still down. But it has a plan.
Source: wwd - 🏆 24. / 68 Read more »