Apple Inc. (NASDAQ:AAPL)
Wamsi Mohan, an analyst at BofA Global Research, is becoming more confident about Apple shares, citing better demand for iPhones as the primary reason. However, he does not feel comfortable recommending the shares just yet.
For a number of years, Apple has been a market leader in the technology business, and one of the most significant contributors to the company’s overall revenue is the iPhone. An analyst has forecast that the continued high demand for iPhones will result in an increase in the price of Apple stock. This forecast was based on the fact that the demand for iPhones has remained high. In the following paragraphs, we will go deeper into the analyst’s prediction and what it means for Apple investors in order to better understand both topics.
Mohan increased his stock price target on Apple AAPL -1.13% stock (NASDAQ:AAPL) from $158 to $168 on Wednesday while maintaining his Neutral rating.
He said that “our checks suggest iPhones and Services are stable to better” and that “revenue” was also helped by “incremental FX [currency] tailwinds.” “Despite the fact that Macs and iPads have been showing a downward trend, the parts of the portfolio with the highest profit margins will probably keep gross margins stable.”
Apple’s stock dropped 0.7% to $164.41 per share in trade on Wednesday. The price of the stock has decreased by 6% during the course of the past year.
According to the research conducted by the analyst, the risk and return presented by Apple stock are “balanced.” He is of the opinion that any upside from sales of iPhones and prospective new product launches, such as headgear for augmented or virtual reality, could be canceled out by weaker consumer spending later on this year.
Apple stock prices are anticipated to rise due to increased demand for iPhones:
Market analyst has projected that there will be an increase in the price of Apple’s shares due to the demand for iPhones. This forecast is founded on a number of considerations that point to the assumption that the market for iPhones will continue to show signs of expansion in the years to come. Any increase in demand for the iPhone will have a substantial influence on Apple’s overall financial performance because the iPhone is one of the most significant income streams that the business generates.
Mohan also forecasts that the rate of increase for Apple’s revenue from services would start to improve during the company’s fiscal third quarter, which will finish in June.
The sentiment on Wall Street toward Apple shares is typically optimistic. According to FactSet, seventy-eight percent of the analysts covering the firm have ratings of Buy or an Equal on shares, while seventeen percent have rates of Hold.
Apple has been at the forefront of innovation in the technology sector for many years, and the popularity of its iPhones has been a big factor in the company’s continued success. The forecast made by the expert, which states that improved demand for iPhones will result in higher stock prices for Apple, presents an attractive opportunity for potential investors. Apple’s stock prices are expected to rise as a result of the rise in demand for iPhones because this will result in increased revenues for the company, which will ultimately lead to a rise in stock prices. Investing in the stock market always involves some level of risk; therefore, prospective investors should perform adequate research before deciding how to allocate their capital.
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