(Markets Insider) Wedbush’s analyst Da Ives says Apple is a defensive tech stock to own in the wake of Russia-Ukrainian induced volatility.
Ives backs his claims by the observation that Apple is only down 10% year-to-date, which is significantly lower than a decline of around 18% for the composite Nasdaq 100.
The analyst also says Apple has outperformed mega-cap peers such as Alphabet, Microsoft, and Amazon, underlining its position as a defensive stock in times of high volatility.
The sentiments by Ives follow Apple’s launch of the third-generation iPhone SE on Tuesday. The analyst says the stock outperformance could continue after the launch of the new product.
Apple’s iPhone SE, which is 5G enabled, comes at $429 price, up by $30 from the second-generation model. Ives says he does not think the higher price will hurt demand since it comes at a time of high inflation and carries improved features.
Ives further states that Apple releases the new product at a time the world is facing global supply chain disruptions, underlying the company’s production muscles.
The Wedbush analyst gave Apple an outperform rating, with a potential upside of 25% to $200 price.
AAPL: NASDAQ is up +1.78% on premarket.
