Apple's Regulatory Risks Led Pullback Likely To Render A Buying Opportunity, Analyst Says

After outperforming in 2019-2021, Apple Inc's AAPL shares largely traded in line with the SP50 (~-20% YTD), Citi analyst Jim Suva noted.
Suva reiterated a Buy on Apple with a $175 price target.
Shares have fared better than the large-cap peers Alphabet Inc GOOG GOOGL Google, Meta Platforms Inc META, Netflix Inc NFLX, Amazon.com Inc AMZN.
Looking ahead, there are several puts and takes for Apple's products and services, given broader macro consumer woes, Suva wrote in a note titled "2023 Outlook: Six Reasons (+ Bonus Option) Apple's Shares Can Trade Higher."
While the December quarter is constrained by supply (China COVID closures impacting production), the analyst believes demand for Apple's products and services will likely remain resilient throughout FY23.
The analyst recognized that regulatory risks remain a significant overhang on the stock but viewed these as headline risk rather than fundamental risk.
Such headlines could provide a near-term stock pullback which the analyst would view as a buying opportunity for Apple shares.
Apple's current market value does not reflect new product category launches. This will change with the new AR and VR headset launch in 2023 and foldable in 2024.
Price Action: AAPL shares traded higher by 2.81% at $136.03 on the last check Wednesday.