On Tuesday, investment bank Piper Sandler raised its target price for Apple, but also pointed out that many recent bullish news has already been "reflected in the stock price." Analyst Matt Farrell raised Apple's target price from $190 to $225, with a neutral stock rating.$Apple (AAPL.US)$The target price, but at the same time pointed out that many bullish news in recent times have already been "reflected in the stock price". The analyst Matt Farrell from the bank raised the target price of Apple from $190 to $225 and rated the stock as "neutral".
The analyst stated in a report, "From our point of view, the excitement makes sense as artificial intelligence may be an important driver of Apple's hardware upgrade. In addition, the recovery of iPhone sales in China may create a bullish factor in the second half of the year." "However, considering the current valuation and the increasing risk of consumer spending headwinds, we think that many bullish news has already been reflected in the stock price." The analyst added that the expected PE ratio for Apple's stock in the next 12 months is 32 times, a new high in three years, and close to the high point of 15 years (35 times); the premium over the S&P 500 index is close to the highest point in a decade.
Despite many research institutions recently stating that Apple's introduction of Apple Intelligence could become a driver for hardware upgrades, Matt Farrell is not sure if this will happen. The analyst said, "So far, we have been uncertain about the consumer use case of artificial intelligence. From our point of view, we will see a 'super cycle' of Apple Intelligence driving hardware upgrades - as indicated by recent stock price trends - but we are not yet ready to treat it as a basic scenario."
Although many research institutions have recently stated that Apple Intelligence introduced by Apple may become a driving force for hardware upgrades, Matt Farrell is not sure if this will happen. Analysts said, "So far, we have been hesitant about the consumer use cases of artificial intelligence. From our point of view, we will see the situation where Apple Intelligence drives the 'super cycle' of hardware upgrades - as recent stock price trends have shown, but we are not ready to take this as a fundamental case."
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