With Apple at $155, analyst defends his $280 Apple price target (video)

“For Amazon and for Apple there are reasons to believe the sell-off is overdone.” — D.A. Davidson’s Tom Forte

From CNBC’s Squawk on the Street Wednesday morning:

For Apple, I think there’s just way too much negativity in shares. What people are over-discounting is that the higher selling prices on their new iPhones may enable them to generate revenue growth on lower unit sales. So I think there’s reason to be more optimistic than the market is on those two stocks in particular.

I see the big sell-off in tech as a reflection of concern about the rising interest rates and the prolonged and sometimes escalating trade war between the U.S. and China.

Hopefully as 2019 progresses there won’t be too many more interest rate hikes. And the as it pertains to China and the U.S., hopefully as the year progresses they’ll figure out a way to forge some sort of lasting agreement and these tariff concerns will go away. And that will create a much better environment for tech in general and Amazon and Apple specifically.

My take: Hopefully. But as Forte points out, a 50% drop means you have to grow 100% to get back where you started.

Cue the video:

[youtube=https://www.youtube.com/watch?v=YRFCOAWRCjY&w=840&h=473]

See also: D.A. Davidson trims Apple price target to $280