Apple is set to report its third-quarter earnings, with analysts focusing on its AI initiatives and the upcoming iPhone 16. Wedbush predicts a turnaround story beginning in September, with potential growth in China and Apple Intelligence adding $30 to $40 to each share of Apple stock. The firm reiterated an “outperform” rating and a price target of $275, implying a 24% upside.
Bank of America expects AI features to fuel demand for iPhones, with investors mostly ignoring earnings results and instead focusing on guidance related to AI-enabled iPhones and revenue growth in China. They reiterated a “buy” rating and raised their price target to $256, implying a 15% upside. Needham notes Apple’s ecosystem “lock-in” and revenue growth through various subscription services, but highlights risks such as geopolitical tensions with China and potentially weaker consumer demand.
Morgan Stanley predicts a big upgrade cycle as a large number of Apple users are set to upgrade their devices. Apple Intelligence could help sell as many as 235 million iPhones in the 2025 fiscal year. The bank reiterated an “overweight” rating with a price target of $273, implying a 23% upside. Oppenheimer sees Apple as a dominating force in AI and believes their initiatives could accelerate hardware replacement and market share gain for iPhone, iPad, and Mac.
Barclays believes Apple’s financial results will start looking better in the September quarter, with the company on track to see 9% revenue growth by 2025. However, they caution that Apple’s stock may not have much more room to climb due to its high price-to-earnings ratio. The bank reiterated an “underweight” rating but raised its price target to $187, implying a 16% downside. Overall, analysts are optimistic about Apple’s future growth potential, particularly through its AI initiatives and upcoming product launches.
