American investment firm Wedbush Securities Inc. believes investors should take to Apple as a safety holding amid the market volatility, Business Insider reported.
Wedbush noted that Apple had recorded softer blows from the volatility down 10% year-to-date versus the Nasdaq 100, which has slipped some 18%. It has also outpaced stocks such as Alphabet, Amazon, and Microsoft.
Analyst Dan Ives believes the tech giant is expected to continue overtaking other stocks, as it is a “safety tech name” to invest in amid the volatility driven by the conflict between Russia and Ukraine.
Ives said Apple will also be buoyed by its third-generation iPhone SE which is the cheapest in its lineup. The company also launched its new iPad Air and Mac Studio, which drove optimism given the ongoing supply constraints.
Ives described Apple as the “Rock of Gibraltar” defensive tech holding and the “best 5G tech play” currently in the market as he noted the increasing traction along with its “undervalued” services business.
Ives maintained his outperform rating on Apple, with a price target of $200 equivalent to an upside of 25%.