On Friday, stocks in Apple Inc. dropped as the company announced the closing down of its stores in four states. The locations that the company decided to close again include 6 stores in Arizona, 2 in Florida, 2 in North Carolina and 1 located in South Carolina. Although Apple has recently reopened its stores, it decided to close some of its locations due to the increased number of coronavirus cases in some areas in the US.
All of the four states where Apple intends to close its stores have shown a drastic jump in coronavirus cases. Experts believe that Florida may become the new epicenter as the reported cases in the state increased rapidly.
While Apple had some of its stores reopened as the shutdown restrictions were lifted in many states, the company took a few measures to ensure the safety of its customers and employees. Some Apple stores offer curbside pickups, while others implement temperature checks and mandatory masks while shopping.
The concerns about a second pandemic wave shook the stocks in Walt Street, with many of them closing lower on Friday. Apple Inc. shares also dropped 0.57% as investors feared that the closing of some of the company’s stores would mean a slower recovery.
While Apple stores located in other states will continue operating, there will be some restrictions that will ensure social distancing and a safe environment for shoppers. The closure of the store should not have a huge negative impact on the sales but the uncertainty of the spread of the virus and its impact may force more stores to close. This would further postpone the economic recovery of many retailers, including Apple.
Analyst stock price forecast and recommendation
According to CNN Money, 37 analysts offering 12-month price forecasts for Apple Inc. have a median target of $330.00, with a high estimate of $410.60 and a low estimate of $195.43. The median estimate represents a -5.58% decrease from the last price of $349.50.
The same media also offers the recommendations of 40 investment analysts who have a consensus rating of “Buy” for the Apple Inc. stock. Out of the 40 analysts, 23 ranked the stock as “Buy”, 11 as “ Hold”, 1 as “Sell”, 2 as “Underperform” and 3 – as “Outperform”.