Apple’s shares (NASDAQ:AAPL) are on the brink of setting a new record close today, as they rally at the time of writing. The spike is primarily attributed to the anticipation surrounding the company’s Worldwide Developers Conference taking place this week. Apple is anticipated to announce its entrance into the metaverse with a virtual and augmented reality headset. Furthermore, investors are eager to learn about the company’s strategy regarding artificial intelligence, which has significantly shaped the market landscape in 2023.
Evercore ISI analysts predict a higher ascent for the stock, raising their target to $210 from $190. They also reiterated an outperform rating, citing Apple’s potential to maintain mid-single-digit sales and double-digit EPS growth over the next few years. The forthcoming VR/AR product is expected to yield around $10 billion in sales and contribute 20 cents to the EPS within five years, marking another successful venture for Apple’s thriving wearables segment.
In addition, amidst the dwindling excitement over the metaverse, Apple’s projected leap into mixed reality technology with their new headset could potentially rekindle enthusiasm in the sector. The gadget, boasting high-definition screens and advanced cameras, is poised to blend digital and physical realities, marking a possible watershed moment in this field.
Overall, analysts have a Strong Buy consensus rating on AAPL stock based on 22 Buys, five Holds, and one Sell assigned in the past three months, as indicated by the graphic above. Nevertheless, the average price target of $184.89 per share implies less than 1% upside potential.
