With an already strong year behind it, Apple (NASDAQ: AAPL) shows no signs of slowing down, as it added over 4% to its value since 2024 commenced. And that might be just the tip of the iceberg, as analysts predict a 20% increase driven by innovations.
Analysts from Bank of America raised the price target by $17 to $225 per share, citing increased estimates for iPhone and Services.
The upgrade decision coincides with a shift in investor attention toward the anticipated debut of Vision Pro, which completely sold out its stock on release, and the forthcoming AI-powered iPhone, which is expected to be released in late 2024 or 2025.
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Reasons for AAPL stock upgrade
A more optimistic outlook for Apple stock is backed by various factors, such as a robust multi-year iPhone upgrade cycle, increased growth in Services, robust capital returns, and more. Analysts also contend that negative EPS estimate revisions are now behind Apple.
Increased iPhone and Services estimates propelled EPS beyond Wall Street expectations, surpassing 7% for fiscal 2025 and 4% for fiscal 2026.
Additionally, in 2023, Apple Inc.’s iPhone outpaced Samsung Electronics Co. devices, securing the position of the best-selling smartphone series. This is the first instance since 2010 that South Korea’s largest company has ceded the top spot.
AAPL stock price analysis
At the time of reporting, AAPL stock was trading at $194.17 since the markets closed on January 25, marking a -0.17% decrease. This stock has added 2.54% to its value in the previous five trading sessions.
Technical indicators for the Cupertino giant’s stock are bullish, as they award it with a ‘buy’ rating of 14. With moving averages tilting towards ‘strong buy’ at 13. Oscillators are contrarian with a ‘sell’ rating of 3.
With all the innovations on the horizon, a record-breaking year, and analysts’ optimism, it is hard to imagine this stock performing poorly over the course of this year.
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