Apple Inc. (NASDAQ:AAPL) shares fell 2.69% on Monday after news broke NSO’s Pegasus spyware hacked iPhone devices running iOS 14.6. Reports say the surveillance tool was sold to various authoritarian governments to target human rights activists and journalists.
However, NSO stated to the media to refute those claims saying that the investigations leading to the publication of the spyware reports took into account uncorroborated theories and wrong assumptions.
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The statement also read:
NSO does not operate the systems that it sells to vetted government customers and does not have access to the data of its customers’ targets. NSO does not operate its technology, does not collect, nor possesses, nor has any access to any kind of data of its customers.
Therefore, the Israeli Surveillance firm NSO Group appears to have distanced itself from the hacking claims, creating more uncertainty.
Will this affect Apple shares for the long term?
The hacking report will cause a scare among users of iPhones running iOS 14.6. However, the technology giant will undoubtedly come up with a solution to avert the exposure. It could be as simple as using a different version of the iOS or updating version 14.6 to rid hackers. Therefore, this may not be a long-term problem because it is something that Apple may be able to deal with momentarily.
As such, AAPL stock’s recent pullback triggered by Monday’s news presents an exciting opportunity to add a blue-chip stock to your portfolio. The stock trades at a compelling forward P/E ratio of 26.65. In addition, a recent JPMorgan analyst report suggested that the stock price could soar to $175 within the next 12 months, implying an upside potential of more than 23% based on Monday’s closing price.
Technical overview: Apple stock price forecast for Q3 2021
Apple shares pulled back from overbought conditions of the 14-day RSI after Monday’s spyware news. However, the AAPL stock price could be set for a rebound in the coming days after the market digests the information.
Although there is room left for more declines, Apple’s recent price hike by analysts could provide the catalyst for a rebound. Therefore, investors can target profits at approximately $149.74 or higher at $158.00. The support levels are $135.58 or lower at $127.36 in case of extended pullbacks.
Bottom line: Target Apple stock price rebound
Monday’s spyware hacking reports disrupted Apple’s upward movement, but this could be just temporary. The company’s share valuation looks exciting at the current forward P/E ratio of 26.65, while analyst price targets provide a 23% upside potential.
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