$Apple (AAPL.US)$ Apple needs a new story
Bank of America Ratings丨Bank of America: Upgrading Apple's rating to “buy” AI and Vision Pro will be the driving force for growth, January 18 | Bank of America Securities raised Apple's rating from “neutral” to “buy”, and the target price was raised from $208 to $225. Artificial intelligence (AI) and Vision Pro headsets will be the driving force for growth.
Bank of America Securities analysts raised Apple's rating because demand for the latest hardware has driven a stronger iPhone upgrade cycle over the years to use generative artificial intelligence capabilities in 2024/2025. Analysts added that Apple's weight is still low compared to the S&P 500, and expectations for artificial intelligence functions may encourage institutional investors to increase their positions; the risks surrounding legal issues are manageable; and recent relatively poor stock price performance shows that expectations include many risks.
Investors' focus is shifting to Vision Pro, which is expected to launch in February 2024, and the AI-based iPhone to be launched in 2024/2025. Analysts raised iPhone sales estimates. FY2024, 2025, and 2026 were 233 million, 250 million, and 250 million, respectively, and the previous forecasts were 231 million, 244 million, and 230 million respectively; service revenue forecasts for fiscal year 2024 and fiscal year 2025 were 107 billion and 110 billion US dollars respectively, compared to the previous forecast of 9...