Apple Inc. (NASDAQ: AAPL) has been on a roll, closing at $253.48 on Tuesday, marking a gain of $2.44 (0.97%).
Over the past week, the tech giant’s shares have climbed by 2.13%, while the past month has seen an impressive surge of 11.17%, pushing Apple to a new all-time closing high as the S&P 500 dances near its own record levels.
The Apple faithful are smiling, but Wall Street’s price targets suggest a more cautious outlook, making this climb a thrilling — yet precarious — ride.
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Over the past month, Apple’s stock has zigzagged through a range of $225.71 to $253.83, a rollercoaster of volatility that has now landed near the upper end of that spectrum.
Apple’s key technical levels include a support zone between $233.46 and $240.43, formed by multiple trend lines and significant moving averages. If the stock faces a pullback, this zone is likely to provide a cushion.
On the upside, a continuation of the current bullish trend could see Apple challenge higher resistance levels, especially if market sentiment remains positive.
Wall Street’s AAPL price target
Based on 30 Wall Street experts tracked by TipRanks, Apple holds a consensus rating of “Moderate Buy.” This might sound like a cautiously optimistic thumbs-up, but the devil is in the details. While 19 analysts are waving the “Buy” flag, 9 are hedging their bets with a “Hold,” and 2 are bluntly calling for a “Sell.”
When it comes to the numbers, the average 12-month price target sits at $242.60, suggesting a modest downside of 4.29% from its current lofty perch.
On the high end, some analysts are betting on a moonshot to $300, fueled by Apple’s relentless innovation and the evergreen appeal of its brand. Meanwhile, the pessimists are setting their sights as low as $184, pointing to potential pitfalls like market saturation and regulatory challenges.
Yet, there’s a sense that Apple is walking a tightrope. The sky-high valuation has many wondering if the stock has priced in too much optimism, setting up a potential pullback if the company hits even a minor speed bump.
J.P. Morgan weighs in on AAPL stock
One key driver of Apple’s recent rally is the mounting excitement over artificial intelligence (AI) integration within its ecosystem.
J.P. Morgan’s Samik Chatterjee pointed to the potential for AI to invigorate iPhone sales and elevate Apple’s trajectory even further. On December 16, Chatterjee discussed the prospect of the integration of AI with the iPhone and other devices that has helped drive it upward even though tangible sales boosts remain elusive.
Investors, however, shouldn’t lose faith. Chatterjee anticipates the real payoff will arrive with the launch of the iPhone 17 in 2025, forecasting iPhone sales to jump from 230 million units in fiscal 2025 to 251 million units in fiscal 2026.
“The bull case without AI hinges on healthy revenue and earnings growth led by Services revenue growth and margins with limited further downside on iPhone volumes and an intact premium valuation while investors await datapoints around consumer traction for AI features,” Chatterjee wrote.
Chatterjee maintains an ‘Overweight’ rating on Apple and set a price target of $265 by the end of 2024, based on a price-to-earnings multiple of 27x his projected 2026 earnings. His outlook remains bullish not just because of AI’s potential, but also due to Apple’s robust Services division, which continues to deliver healthy revenue growth and expanding margins.
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