Apple estimates lowered on shutdowns in Zhengzhou at Piper Sandler

Piper Sandler analyst Harsh Kumar reduced forecasts for Apple primarily based on iPhone supply concerns from shutdowns in Zhengzhou, China. He cut his revenue forecast for the December quarter to $119B from $127.3B and assumes a reduction of 9M handset units primarily for the new models produced in November. However, Kumar notes that COVID restrictions have since been relaxed. The analyst believes Apple "remains a formidable brand" and reiterates an Overweight rating on the shares with a $195 price target despite this "temporary reduction from unforeseen events."