BNP Paribas upgraded Apple to Outperform from Neutral on Tuesday and set a $300 price target on the iPhone maker, saying the company has an opportunity to drive share gains even as higher memory prices weigh on the smartphone market.
The call landed in the middle of a broader Wall Street roundup that was heavy on caution for the sector. The analyst said the memory price crunch should translate to low-to-mid tier demand destruction at the industry level for smartphones, but added that Apple is impacted by higher memory prices while its size availability is not an issue and it typically commands the best price.
That combination left Apple looking better positioned than many of its peers, at least in BNP Paribas's view. The firm also downgraded Qualcomm to Neutral from Outperform and cut its price target to $120, underscoring how the bank sees pressure spreading across the smartphone chain rather than easing anytime soon.
BNP Paribas said it sees no end in sight for smartphone woes, a warning that makes the Apple upgrade stand out as a relative call rather than a broad endorsement of the market. For investors watching apple stock, the message is that the company may be able to hold up better than the industry even if the backdrop remains rough.
