Apple 11% pullback can be seen as largely overdone, says JPMorgan
Apple has sold off 11% since the start of last week on resurfacing concerns related to the imposition of tariffs on imports from China as well as concerns driven by the unfavorable outcome of recent lawsuits, JPMorgan analyst Samik Chatterjee tells investors in a research note. Given that there has been limited impact from the tariffs on Apple's hardware products to date, and that the likelihood of "outsized" losses from recent lawsuits appears limited, the share pullback can be seen as "largely an overreaction," says Chatterjee. However, the analyst admits that his estimated 14% earnings impact from the imposition of tariffs on all hardware products and the potential modest losses from the lawsuits suggest that there could be more downside on Apple shares in the near-term were sentiment around U.S.-China trade talks to worsen further. Nonetheless, Chatterjee keeps an Overweight rating on Apple with a $235 price target.