Apple stock (NASDAQ: AAPL)
“Although our new estimates are only 1% higher than the street consensus, further upside is likely to be limited by macro supply chain issues rather than demand. Importantly, the US wireless industry has seen signs of improvement in retail traffic, with postpaid switchers increasing and upgrade rates recovering,” according to the note.
The company is expected to release another iPhone model this fall, and UBS believes it will sell well as well.
“UBS forecasts ‘new’ iPhone procurement will reach 85 million units in 2H21, up 12 percent YoY, driven by the launch of the ‘new’ iPhone in September versus the launch of the iPhone 12 last year, which was delayed by a month,” the note said.
Apple’s stock fell 2.7 percent during Monday’s broad market sell-off, the megacap stock’s third consecutive negative session. Apple, on the other hand, is still up more than 9% in the last month.
The new UBS target represents a 16.5 percent increase over the stock’s closing price on Monday.
Apple is expected to release its fiscal third-quarter results on July 27 after the market close.
During Monday’s sell-off, Simon underperformed the broader market and the real estate sector, falling 5.9 percent. Since its recent high on June 8, the stock has lost more than 13% of its value.
“Although we may not be at the bottom, we believe shares pulling back today 5.8 percent vs the [Vanguard Real Estate ETF] -1.9 percent creates an attractive entry point,” according to the note.
Stifel also stated that another Covid wave from virus variants should not result in another round of tenants leaving Simon’s malls.
“Although there is concern about new potential Covid restrictions as a result of the surge in cases due to variants, we believe that SPG’s tenants have had a very tumultuous 17 months and those who have made it this far should be able to withstand a near-term slowdown,” the note said.
Stifel increased its price target on Simon to $132 per share from $125, implying a 12.6 percent increase. In the premarket on Tuesday, it was up 1.9 percent, trading at $119.45.
Best stocks according to Barclays
“Growth is peaking.” They believe stocks will continue to “grind higher”
With the worst of the coronavirus pandemic hopefully behind us, many investment firms believe the global economy is about to transition from a period of rapid recovery to a more stable period of expansion.
This means that the second-quarter earnings season, which begins this week in Europe, could be the mother of all reporting periods.
Barclays believes that earnings-per-share growth (an important metric used by traders to determine the value of a stock) is nearing its peak. Indeed, the bank emphasizes that the consensus for EPS growth in the three months to June is 120 percent, owing to the slump seen during this period last year.
Barclays analysts selected semiconductor stocks such as ASML, AMI, and Aixtron as favorites after carefully screening the stocks on the pan-European Stoxx 600 index. Chip stocks in general have benefited from a supply shortage as the pandemic raged, and Barclays rates these three companies as overweight.
According to Barclays, SAP, Aveva, and Temenos are all “key overweights” in the software and IT sector. It stated that the sector is more complex than others and that it prefers firms with long-term opportunities to increase penetration levels.
When it comes to insurance, Barclays favors Zurich, AXA, and Munich Re. According to the analysts, the three companies benefit from the property and casualty insurance market, which is creating “appealing long-term investment opportunities.”
Meanwhile, in the internet and media sectors, analysts chose four advertising behemoths as their preferred names: WPP, Publicis, Omnicom, and Interpublic. They stated that their valuations were still low, that they expected good momentum, and that confidence was slowly returning to the sector.
More broadly, according to Barclays, the trade-off between economic growth and accommodative monetary policy remains favorable for the time being, with ample liquidity in the global economy. However, it noted that things aren’t getting any better, with the Federal Reserve on the verge of tapering its asset purchases. It went on to say that inflation could be sticky, and that coronavirus variants could cause more supply bottlenecks.
“Given tougher comps and peaking growth momentum, the H2 [second half] outlook appears less favorable. “We believe equities, particularly cyclicals, have already factored in the peak in EPS revisions this quarter,” the note said.
“However, with slowing EPS growth ahead, lower and potentially bumpier returns must be expected.”