Wallstreetcn
2024.07.16 06:39
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The most optimistic bull on Wall Street: How can Apple's stock price reach 300?

Analysts believe that Apple can use generative AI to stimulate device sales, similar to the success it achieved 15 years ago by leveraging the iPhone business in the social media boom

According to the latest forecast from Wall Street, Apple's target price has been raised again.

On Monday, Loop Capital Markets analyst Ananda Baruah raised Apple's stock target price to $300, becoming the most optimistic bull on Wall Street. $300 is currently the highest target price listed by financial analysis firm FactSet.

On the 15th, Apple's closing price was $234.40, with the target price 28% higher than the closing price, and the stock has risen 26% year-to-date.

Analysts are optimistic about the potential of artificial intelligence driving upgrades to Apple devices. Baruah pointed out that Apple may dominate the generative AI field, similar to the success it achieved 15 years ago with the iPhone business in the social media boom. About twenty years ago, Apple also saw significant growth in its iPod business driven by the growth of digital content consumption.

Baruah stated that his supply chain team expects an increase in iPhone manufacturing and demand. Even after the expansion of demand caused by the pandemic, he still believes that generative AI is one of the key driving factors for Apple device upgrades. In addition, the introduction of the new "iPhone platform" with the iPhone 17 expected in 2025 will further promote device upgrades.

Morgan Stanley analyst Erik Woodring also rates Apple stock as a top pick and raised the target price from $216 to $273. Woodring is optimistic about the arrival of Apple Intelligence, believing that it will help Apple in multiple ways.

It is worth noting that although the new artificial intelligence features are currently limited to the iPhone 15 Pro and its subsequent models, Woodring sees the potential for a "mini upgrade cycle" for the iPad, as less than a quarter of the iPads currently in use can run Apple Intelligence.

He wrote:

Despite recent changes in investor sentiment and strong stock performance, we believe there is further upside potential for Apple stock as overall investor allocation to Apple stock remains relatively low