Apple (AAPL) stock rose Thursday after BofA Securities turned positive on the consumer electronics maker, citing artificial intelligence and the company’s upcoming Vision Pro headset as sales drivers.
Apple is known as the world’s most valuable company, but the multi-trillion-dollar tech behemoth is seeing slower growth. Apple stock has essentially only kept pace with the S&P 500 since August 2020, and the consumer electronics giant may no longer be the apple of investors’ eyes. Experts say there’s no growth story for Apple, and investors are looking for the next catalyst. So are the company’s glory days over?” vid-name=”Apple Stock Is Not The Money Tree It Once Was. What Will Make It Grow?” vid-cat=”Industry Insights” vid-date=”10/30/2023″ vid-date-tmsp=”1698669751″ vid-image=”https://www.investors.com/wp-content/uploads/2023/10/r9pm9WPQ-640×360.jpg” vid-authors=”MEREDITH HEYMAN”>
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BofA analyst Wamsi Mohan upgraded Apple stock to buy from neutral and raised his price target to 225 from 208.
Apple stock advanced more than 2% to 186.77 in early trades on the stock market today.
In a client note, Mohan predicted a “stronger multiyear iPhone upgrade cycle” as consumers replace older handsets to take advantage of generative AI features coming this year and next.
Apple’s Vision Pro spatial computing headset also should provide a sales lift, he said. Preorders for the device begin Friday, with product availability starting Feb. 2.
Apple Stock Upgrade Follows Two Downgrades
Mohan also forecast higher growth in services as Apple better monetizes its installed base.
Plus, risks around legal issues facing the company are “manageable,” he said. Those legal issues include antitrust actions and patent infringement lawsuits.
Meanwhile, sentiment in Apple stock should turn more positive as investor attention shifts to the Apple Vision Pro launch and AI-enabled iPhones, he said.
Earlier this month, investment banks Barclays and Piper Sandler downgraded Apple stock on concerns over weak iPhone sales.
Follow Patrick Seitz on X, formerly Twitter, at @IBD_PSeitz for more stories on consumer technology, software and semiconductor stocks.
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