AAPL Price Surge Prediction Amid Tepid iPhone 16 Cycle for Apple Stock
AAPL Price Surge Forecast Amid Tepid iPhone 16 Cycle
A Wall Street analyst's optimistic outlook and target price revision reflect a robust perspective on Apple (NASDAQ: AAPL) stock, even as the iPhone 16 cycle shows signs of weak performance.
Current Market Conditions for AAPL Stock
Currently priced at $228.28, AAPL has seen a 0.1% increase in the last 24 hours, and it is fighting to maintain a position above the key $230 mark. However, on a monthly basis, the stock has dropped by nearly 3.5%, although it is up over 22% for the year 2024.
Analyst Insights on Apple Stock
- Toni Sacconaghi of Bernstein retains an Outperform rating with a $240 target representing AAPL’s strong long-term potential.
- He acknowledges a negative cash conversion cycle, enhancing AAPL’s valuation.
- Sacconaghi identifies **artificial intelligence (AI)** as a significant growth driver for Apple going forward.
Recommendations for Investors
Investors should consider increasing their AAPL holdings if the stock dips below $200 or during the February to April period.
The Bullish Case for AAPL Stock
In a potential bull case, AAPL could reach a projected earnings per share (EPS) of $9 by FY 2026, translating into a share price of $290, recognizing that the iPhone 16 cycle is struggling to meet demand expectations.
The initial sales figures have prompted others, such as Morgan Stanley, to lower their price targets due to projected short-term declines. Nevertheless, the overall optimism in broader markets could mitigate these concerns.
This article was prepared using information from open sources in accordance with the principles of Ethical Policy. The editorial team is not responsible for absolute accuracy, as it relies on data from the sources referenced.