Morgan Stanley analyst Erik Woodring maintains a buy rating for Apple and raises its target stock price from $216 to $273. Analysts say Apple's upcoming artificial intelligence (AI) platform, Apple Intelligence, is expected to significantly boost hardware sales.
On July 15th, Finance & Economics News (Editor Xia Junxiong) reported that on Monday Eastern Time, Morgan Stanley raised the target stock price for Apple and named it as a Preferred Stock with the reason that the upcoming AI platform, Apple Intelligence, is expected to significantly boost hardware sales. At the time of publication, Apple's stock price rose nearly 2% on Monday, with a cumulative increase of more than 22% this year and a total market value of USD 3.6 trillion. At this year's WWDC ( Worldwide Developer Conference), Apple announced Apple Intelligence. Since then, Apple's stock price has risen by about 17%, far exceeding the 7% increase in the Nasdaq 100 index during the same period.$Apple (AAPL.US)$Morgan Stanley analyst Erik Woodring maintained a buy rating for Apple and raised its target stock price from USD 216 to USD 273, praising the technology giant as a 'preferred stock.' Woodring said: 'Apple Intelligence is clearly a catalyst to increase iPhone and iPad shipments.' According to analysts, only 8% of iPhone and iPad users among current Apple hardware users can support Apple Intelligence, and it is estimated that 1.2 billion iPhones, iPads and Macs will need to be upgraded in the future 2 years, and Apple is expected to sell nearly 0.5 billion iPhones in the future.
Apple Intelligence will be officially launched this fall, initially only available to English iPhone users in the United States. However, Woodring believes that in the next 12 to 24 months, as other language versions of Apple Intelligence are launched, more value will be brought to users, and this will create conditions for Apple to recover YoY growth in the 2025 fiscal year, followed by a large upgrade cycle in 2026.
Previous financial reports showed Apple's revenue for the second quarter of the 2024 fiscal year (the first quarter of the calendar year) was USD 90.8 billion, a YoY decrease of 4.3%, but better than market expectations. Apple will release its third-quarter financial report on August 8th. IDC predicted that Apple and Samsung will lead the global smartphone market recovery this year.
In terms of product structure, the operating income of 100-300 billion yuan products is 401/1288/60 million yuan, respectively.
Woodring said, 'Apple Intelligence is clearly a catalyst for increasing shipments of iPhones and iPads.'
Analysts predict that this year Apple and Samsung will lead the global smartphone market recovery. IDC's data showed that in the second quarter of this year, Apple sold 45.2 million smartphones globally, up from 44.5 million in the same period last year, but its market share dropped from 16.6% to 15.8%.
Woodring wrote: 'Recent positive catalysts include (third-quarter) earnings, the September iPhone release conference, and possible iPhone production adjustments in mid-October.'
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According to the previously released financial report, Apple's revenue for the second quarter of the 2024 fiscal year (first quarter of the calendar year) was $90.8 billion, a 4.3% decrease from the same period last year, but better than market expectations. Apple will release its third quarter financial report on August 1st local time.
The text is translatable into English. Please refer to the translations above.
The text is translatable into English. Please refer to the translations above.
Editor/Somer