In a report released today, Srini Pajjuri from Raymond James reiterated a Buy rating on Apple (AAPL – Research Report), with a price target of $250.00.
Srini Pajjuri has given his Buy rating due to a combination of factors, including Apple’s recent financial performance and strategic positioning. Apple’s financial results for the fourth quarter of fiscal year 2024 slightly exceeded expectations, with robust growth in iPhone sales across all regions and sustained double-digit growth in its Services segment. Despite a modest outlook for the first quarter of fiscal year 2025, Pajjuri remains optimistic about the potential for AI-driven upgrades to enhance Apple’s product offerings in the near future.
Moreover, the early adoption of Apple’s new AI features, coupled with its strong ecosystem, hardware capabilities, and focus on privacy, positions the company well for future growth. The on-device AI features present a lower capital expenditure and faster monetization through consumer hardware upgrades, making Apple’s stock particularly attractive amidst ongoing discussions on generative AI’s monetization and return on investment. Although FY25 earnings per share estimates have been slightly reduced, the anticipated acceleration of AI features is expected to drive future growth, supporting Pajjuri’s Buy rating on Apple stock.
In another report released today, Bernstein also assigned a Buy rating to the stock with a $240.00 price target.
Based on the recent corporate insider activity of 43 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of AAPL in relation to earlier this year.
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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.