APPLE : BofA upgrades its recommendation to 'buy', raises its target price
January 18, 2024 at 10:17 am
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Bank of America announced Thursday that it has raised its recommendation on Apple from 'neutral' to 'buy', with its price target raised from $208 to $225.
In a research note, the broker explains that it expects iPhone sales to be driven by the integration of new artificial intelligence (AI)-related functionalities by 2025 and 2026.
BofA adds that the stock should also benefit from growth in services, as Apple succeeds in better monetizing its large installed base.
In its view, the arrival of AI in the Californian technology group's products could lead institutional investors to strengthen their positions in the stock.
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Apple Inc. specializes in the design, manufacture and marketing of computer hardware and music supports. Net sales break down by family of products and services as follows:
- telephone products (52.1%): iPhone brand;
- peripheral devices (10.5%): screens, storage systems, printers, video camera, memory cards, server, switches, etc.;
- computers (10.2%): laptops (MacBook, MacBook Air and MacBook Pro brands) and PCs (iMac, Mac mini, Mac Pro and Xserve);
- music support (7.4%): music readers iPod and iPad and accessories;
- other (19.8%): software, maintenance service and Internet access service, etc.
Net sales are distributed geographically as follows: Americas (42.4%), China/Hong Kong/Taiwan (18.9%), Japan (6.3%), Asia/Pacific (7.7%) and Europe/India/Middle East/Africa (24.7%).