In a report released yesterday, Gil Luria from D.A. Davidson reiterated a Buy rating on Apple (AAPL – Research Report), with a price target of $260.00.
Gil Luria’s rating is based on Apple’s robust performance in the fourth quarter of 2024, where the company experienced a revival in iPhone sales and notable growth outside the Americas, especially in Europe. Despite the slower than expected rollout of Apple Intelligence, Luria believes it will be a significant catalyst for growth in the iPhone 16 line as more features are introduced, anticipated in December and the following year. Excluding a one-time $13 billion EU tax charge, Apple’s performance would have surpassed expectations, highlighting its strong fundamentals.
Moreover, Apple’s revenue exceeded expectations with a total of $94.9 billion, driven by a 5.5% increase in iPhone sales year-over-year. Although other product lines like Mac, iPad, and Wearables showed slower growth, the company reported an encouraging influx of new customers. Looking ahead, Apple provides guidance for low to mid single-digit revenue growth in the next quarter, with stable growth in its Services division. These factors, along with the anticipated impact of Apple Intelligence features, underpin Luria’s Buy rating and $260 price target, suggesting a 33x CY25 earnings multiple.
According to TipRanks, Luria is a 4-star analyst with an average return of 6.8% and a 50.25% success rate. Luria covers the Technology sector, focusing on stocks such as AppFolio, Braze, and Microsoft.
In another report released today, Bernstein also assigned a Buy rating to the stock with a $240.00 price target.
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Apple (AAPL) Company Description:
Apple, Inc. designs, manufactures, and sells smartphones, personal computers, tablets, wearables and accessories. It also offers a range of related services. Its products include iPhone, Mac, iPad, Apple TV, Apple Watch, Beats products, HomePod and AirPods. The services segment is comprised of AppleCare, cloud services, digital content offerings like the App Store and other content services like Apple Arcade, Apple Music, Apple News+, Apple Fitness+ and Apple TV+, payment services such as Apple Card and Apple Pay as well as advertising and licensing services. The company was founded by Steven Paul Jobs, Ronald Gerald Wayne, and Stephen G. Wozniak on April 1, 1976 and is headquartered in Cupertino, CA.