Since January the title of the iPhone manufacturer has been in the grip of a correction which seems to have ended with the disclosure of the 1st quarter results. (Photo: 123RF)
What to do with the titles of Apple, CGI and Air Canada? Here are some analyst recommendations likely to move prices soon. Note: the author may have an opinion completely different from that expressed.
Apple (AAPL, US$183.38): artificial intelligence will be the Source of the next growth super-cycle
Since January the title of the iPhone manufacturer has been in the grip of a correction which seems to have ended with the disclosure of the 1st quarter results. While investors seemed to fear the worst because of a significant drop in sales in China, the results were better than most observers expected, said Daniel Ives, analyst at Wedbush.
Apple’s total revenue was $90.75 billion, down 4% year-over-year, but slightly above analysts’ consensus forecast of $90.37 billion. US. iPhone sales were 45.93GUS, down 10% from the previous year.
What seemed to please investors was the fact that management said it expects business growth for the next quarter as it perceives that demand for the iPhone in China appears to have turned the corner. The Wedbush analyst believes that sales in China will show growth in the 3rd quarter after showing signs of recovery in the 2nd quarter.
Additionally, investors were certainly happy to hear the announcement of a new US$110B share buyback, which says a lot about the company’s cash flow generation, the analyst points out.
Furthermore, what is certainly eagerly awaited is the unveiling of Apple’s strategy regarding artificial intelligence (AI) which will take place during the Apple Worldwide Developers Conference which will take place on June 14. We should then learn what will be the bases of the Cupertino company’s next super-cycle which will be powered by AI and which will begin with the arrival of the iPhone 16 next fall.
Daniel Ives believes that betting against Tim Cook, Apple’s president, at the dawn of this next super-cycle and following the announcement of the US$110B share buyback risks being a very bad move. idea. It maintains its “outperform” rating, and its target price is US$250.00.
CGI Group (CGI.B, $141.86): the decline over the past month makes the stock interesting for long-term investors
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