Price target: $350
Rating: Overweight
The virus' drag on Chinese demand and global supply will drive "much lower" second-quarter volumes and even spill into the third quarter of 2020, but the company's long-term outlook hasn't changed yet, JPMorgan analysts wrote Monday.
Apple's biggest boost to iPhone sales will arrive in the fall with its 5G-capable lineup. Virus-related risks will likely fade by then, and steady Services revenue can offset some losses, according to the team of analysts.
Shareholders should monitor for additional updates, as the outbreak is still mired in uncertainty, the bank wrote. However, bullish investors can comfortably hold shares until signs of worsening fallout.
"We expect most long-term investors in Apple shares to look past these temporary headwinds, with both products and services continuing to demonstrate strong underlying consumer demand," the team led by Samik Chatterjee wrote.