Apple's Next Big Leap: How AI Software and WWDC Announcements Could Fuel Growth
Portfolio Pulse from Anusuya Lahiri
Morgan Stanley analyst Erik Woodring maintained an Overweight rating on Apple Inc (AAPL) but lowered the price target from $220 to $210, citing a similar earnings setup to 3 months ago with expectations of a slight upside to March quarter revenue but a sizable June quarter guide-down vs. consensus. Despite a 12% lower share price and more harmful buy-side sentiment, Woodring sees potential for a relief rally post-earnings, especially with the upcoming WWDC and new AI software features. Apple's stock has lost 11% year-to-date, but there's nearly 30% upside to the new price target. Investors can also gain exposure to Apple through ETFs like Vanguard Information Tech ETF (VGT) and SPDR Select Sector Fund - Technology (XLK).
April 22, 2024 | 5:24 pm
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POSITIVE IMPACT
Apple Inc maintained at Overweight by Morgan Stanley with a price target cut from $220 to $210, amid expectations of a mixed earnings report but potential upside from WWDC and AI software features.
The adjustment in price target reflects caution due to expected mixed earnings, but the Overweight rating and anticipation of AI-driven growth suggest a positive outlook. The upcoming WWDC and focus on AI software could serve as significant catalysts for stock appreciation.
CONFIDENCE 85
IMPORTANCE 90
RELEVANCE 100
POSITIVE IMPACT
Vanguard Information Tech ETF, which includes AAPL as part of its holdings, could see indirect impact from Apple's earnings report and developments announced at WWDC.
Given AAPL's significant weight in VGT's portfolio, positive developments for Apple, such as a favorable earnings report or exciting news from WWDC, could positively influence VGT's performance.
CONFIDENCE 75
IMPORTANCE 70
RELEVANCE 60
POSITIVE IMPACT
SPDR Select Sector Fund - Technology, holding AAPL shares, might experience an indirect positive impact from Apple's performance and announcements at the upcoming WWDC.
As AAPL is a key component of XLK, any positive news from Apple, including a strong earnings report or promising developments from WWDC, could have a beneficial effect on XLK's valuation.
CONFIDENCE 75
IMPORTANCE 70
RELEVANCE 60