Apple Analyst Turns Bullish, Predicts Strong iPhone Cycle And AI Features
Portfolio Pulse from Anusuya Lahiri
BofA Securities analyst Wamsi Mohan upgraded Apple Inc (AAPL) from Neutral to Buy and increased the price target from $208 to $225, citing a robust multi-year iPhone upgrade cycle, potential for Generative AI features, higher service growth, and strong capital returns. Mohan expects new AI-driven features to boost iPhone sales and services revenue, with higher than expected unit estimates for FY24-FY26 and raised services estimates for FY25 and FY26. He also anticipates that Apple's gross margin will remain stable or increase over time.
January 18, 2024 | 4:21 pm
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POSITIVE IMPACT
Apple Inc's stock may see a positive short-term impact due to the upgrade from Neutral to Buy by BofA Securities and the raised price target from $208 to $225. The anticipation of new AI features and a robust iPhone upgrade cycle, along with higher service growth, could increase investor confidence.
The upgrade by a prominent analyst often leads to a positive market reaction as it suggests confidence in the company's future performance. The specific mention of AI features and a robust upgrade cycle for iPhones, coupled with higher service growth, are strong indicators of potential revenue growth, which is likely to be viewed favorably by investors.
CONFIDENCE 85
IMPORTANCE 90
RELEVANCE 100