Street Calls of the Week
Investing.com - BofA Securities has reiterated a Buy rating and $270.00 price target on Apple (NASDAQ:AAPL), currently trading near its 52-week high of $260.1, as the iPhone 17 series shows promising demand signals. According to InvestingPro analysis, the tech giant’s current market capitalization stands at $3.81 trillion, though the stock appears to be trading above its Fair Value.
The research firm notes that carrier incentives are making iPhones more affordable through bundled financing options and extended payment plans over 24 to 36 months. Subsidies for the new iPhone 17 series have increased by $100 compared to last year, offsetting the iPhone 17 Pro’s higher base price of $1,099 with 256GB storage versus the iPhone 16 Pro at $999 with 128GB storage. This pricing strategy appears to be working, as Apple maintains strong financial metrics with revenue growth of ~6% over the last twelve months.
T-Mobile management reports iPhone activations are up by double digits among both new and existing customers. Verizon management similarly indicates strong upgrade activity in its existing customer base during the quarter, which BofA believes could continue through the iPhone launch period.
Current lead times suggest iPhone 17 standard model shipment times are more extended compared to last year’s launch, while the Pro and Pro Max models show similar availability patterns to the previous generation.
The higher subsidies from carriers appear to be supporting consumer adoption despite the increased base price for the Pro model, which now starts with double the storage capacity of its predecessor. InvestingPro subscribers can access 15+ additional exclusive insights about Apple’s valuation metrics and growth prospects, along with a comprehensive Pro Research Report that provides deep-dive analysis of the company’s financial health and market position.
In other recent news, Apple Inc. has reported strong demand for its iPhone 17 Base model, with UBS maintaining a Neutral rating and a $220 price target. The UBS Evidence Lab data indicates longer wait times for this model in key markets, while demand for other models in the lineup appears subdued. Meanwhile, BofA Securities has reiterated its Buy rating on Apple, setting a $270 price target due to extended shipping times for the new iPhone 17 series compared to last year’s models. In another development, Apple has requested the European Union to reconsider the Digital Markets Act, arguing that it creates business challenges in the region.
Additionally, Apple is reportedly in early discussions with Intel Corp. about a potential investment, although DeepWater Asset Management’s Gene Munster suggests this move may be politically motivated rather than strategically beneficial. Intel has been actively seeking strategic investors to revamp its foundry business, recently securing deals with Nvidia and SoftBank. On a different note, Apple plans to reopen its redesigned Ginza store in Tokyo, featuring a modern layout and powered entirely by renewable energy. This redesigned space marks a significant milestone for Apple, being its first retail location outside the United States since 2003.
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