Apple's Latest Marvel, Vision Pro, Receives Analyst Thumbs Up for Earnings Impact
Portfolio Pulse from Anusuya Lahiri
BofA analyst Wamsi Mohan maintained a Buy rating on Apple Inc (AAPL) with a $225 price target, citing the potential earnings impact of the new Vision Pro. The analyst highlighted the unique and immersive experience of the Vision Pro but noted typical first-generation product hurdles like weight and battery life. Mohan estimates the Vision Pro could add 68-89 cents to Apple's EPS over the next five years, driven by hardware sales and visionOS-based apps. He also mentioned key apps like Netflix (NFLX), Alphabet's YouTube (GOOG, GOOGL), and Spotify (SPOT) are missing from VisionOS at launch. AAPL shares traded higher by 1.60% at $188.83.
February 05, 2024 | 6:53 pm
News sentiment analysis
Sort by:
Ascending
NEGATIVE IMPACT
Alphabet's YouTube is noted as missing from VisionOS at launch, potentially impacting its reach on Apple's new platform.
YouTube's absence from VisionOS at the initial launch may hinder its ability to engage users on Apple's innovative Vision Pro platform, potentially affecting Alphabet's reach and engagement metrics on this new device.
CONFIDENCE 70
IMPORTANCE 50
RELEVANCE 60
NEGATIVE IMPACT
Alphabet's YouTube, under the GOOGL ticker, is also affected by its absence from VisionOS at launch, potentially impacting its user engagement on Apple's new platform.
Similar to GOOG, the absence of YouTube from VisionOS under the GOOGL ticker signifies a missed opportunity for Alphabet to leverage Apple's new platform for enhancing user engagement and expanding its reach.
CONFIDENCE 70
IMPORTANCE 50
RELEVANCE 60
NEGATIVE IMPACT
Netflix is mentioned as one of the key apps missing from VisionOS at launch, which could impact its visibility on Apple's new platform.
Being absent from the VisionOS at launch might limit Netflix's ability to capitalize on the new and immersive platform provided by Vision Pro, potentially affecting its user engagement and growth on this new hardware.
CONFIDENCE 70
IMPORTANCE 50
RELEVANCE 60
NEGATIVE IMPACT
Spotify Technology is identified as one of the key apps not available on VisionOS at launch, which could impact its user base growth on Apple's new platform.
Spotify's absence from the initial launch of VisionOS could limit its ability to attract and retain users on Apple's Vision Pro platform, potentially impacting its growth and visibility in the short term.
CONFIDENCE 70
IMPORTANCE 50
RELEVANCE 60
POSITIVE IMPACT
Apple's Vision Pro is expected to positively impact earnings, with an estimated addition of 68-89 cents to EPS over the next five years according to BofA analyst Wamsi Mohan.
The positive analyst rating and the expected earnings impact from the Vision Pro contribute to a bullish outlook for Apple's stock in the short term. The unique and immersive experience of the Vision Pro, despite first-gen product hurdles, is anticipated to drive hardware sales and app development, further boosting Apple's earnings.
CONFIDENCE 85
IMPORTANCE 90
RELEVANCE 100