Bank of America raised its price target on Apple to $320 ahead of the company’s Thursday earnings release, according to a note from the bank. Analyst Wamsi Mohan reaffirmed his buy rating while moving the previous $270 target to the higher level, which reflects a 19% upside from where the stock is trading right now. Wamsi said Apple’s scale is not preventing future expansion and argued that the company is positioned for long-term growth even in a competitive environment where investors are closely examining demand trends. Wamsi said that Apple is set to benefit from the ongoing interest in artificial intelligence, and said the company could eventually become a leader in the space. He highlighted Apple’s brand strength, its extensive ecosystem, and its large user base as core advantages. In Wamsi’s words, “We consider the impact of Artificial Intelligence (AI) on Apple’s revenues, enhancing potential new product offerings (AI augmented eye-wear, in-house AI robots/smart home), while potentially being disruptive in other cases (AI impact on traditional search revenues).” Wamsi continued by writing, “Reiterate Buy on strong capital returns, eventual winner in AI at the edge & optionality from new products/markets.” Wamsi expects Apple’s earnings per share to more than double within six years. iPhone 17 demand watched closely as earnings approach Heading into the fiscal fourth-quarter earnings on Thursday, Wamsi raised his iPhone shipment estimates, pointing to stronger demand for the iPhone 17 Pro and iPhone 17 Pro Max models. He anticipates that Apple will guide revenue growth in the high single digits for the current quarter. Apple’s stock is up 7% so far this year, and 33 out of 51 analysts who follow the company have rated it a buy or strong buy, based on data tracked across coverage. A key focus for investors this week is whether the iPhone cycle is entering what some call a “super‑cycle”, which would be the first period of renewed year‑over‑year growth since iPhone revenue peaked in fiscal 2022. Estimates collected across Wall Street indicate that Apple is projected to exceed that peak in fiscal 2025, depending on sustained demand. Industry research has shown that iPhone 17 demand has been strong this cycle. The base iPhone 17 includes the company’s fastest chip to date and a higher refresh rate display, which helped move the model in multiple regions. The iPhone 17 Pro models feature full aluminum frames and improved battery performance, another factor that has supported demand. iPhone Air struggles while Apple adjusts manufacturing orders However, the new iPhone Air is not performing at the same level. Wells Fargo analyst Aaron Rakers wrote earlier this month that “Some reports have highlighted a more muted iPhone 17 Air uptick than we believe some had initially anticipated.” Apple has seen weaker sales on its fourth lineup model before. The Mini, later replaced by the Plus, and now replaced again by the Air, have consistently trailed behind the baseline and Pro models since Apple expanded to four devices in 2020. The iPhone Air, launched at $999, sits between the $799 iPhone 17 and the $1,099 iPhone 17 Pro. It is lighter and thinner, but has only one camera lens and shorter battery life compared to the rest of the lineup. When presenting the device in September, CEO Tim Cook said it was an “iPhone that feels like a piece of the future.” Still, early sales trends have not matched expectations in the United States and other markets. There is one region where the Air had a short burst of traction. The device did not go on sale in China until earlier this month, and it sold out within minutes once released, as reported by the South China Morning Post. But preference appears to lean back toward familiar models after that initial launch window. Last week, Nikkei in Japan reported that Apple has “drastically” reduced component orders for the iPhone Air with supply partners while increasing orders for the iPhone 17 and Pro models instead. The adjustment reflects where demand is actually landing in the market. Join a premium crypto trading community free for 30 days - normally $100/mo.
