Wamsi Mohan, an analyst from Bank of America Securities, reiterated the Buy rating on Apple. The associated price target remains the same with $235.00.
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Wamsi Mohan has given his Buy rating due to a combination of factors influencing Apple’s financial outlook. Despite some negative client sentiment stemming from tariff impacts, a U.S. Department of Justice investigation, and challenges in the App Store and AI sectors, Mohan anticipates that Apple’s gross margins will improve following a temporary dip. This improvement is expected to be driven by the launch of higher average selling price products, such as the anticipated slim iPhone model, which is projected to enhance iPhone traction, particularly in China.
Additionally, Mohan expects Apple’s product cycles to positively impact sales across its iPhone, Mac, and iPad lines. The introduction of new models, including the slim iPhone and MacBook Air with the M4 chip, is likely to drive higher unit sales and revenue growth. Despite the headwinds from tariffs, Mohan maintains a positive outlook on Apple’s ability to achieve in-line or slightly better-than-expected revenue and earnings, justifying the Buy rating with a price objective of $235.
Mohan covers the Technology sector, focusing on stocks such as Apple, Seagate Tech, and International Business Machines. According to TipRanks, Mohan has an average return of 12.8% and a 60.97% success rate on recommended stocks.
In another report released today, TD Cowen also maintained a Buy rating on the stock with a $275.00 price target.