JPMorgan maintains Apple stock rating, sees potential upside from iPhone Air

Published 02/09/2025, 08:40
JPMorgan maintains Apple stock rating, sees potential upside from iPhone Air

Investing.com - JPMorgan has reiterated its Overweight rating and $255.00 price target on Apple (NASDAQ:AAPL), currently trading at $232.14, ahead of the company’s fall iPhone launch event. According to InvestingPro analysis, Apple appears overvalued at current levels, with analyst targets ranging from $175 to $300.

The investment bank notes that while iPhone launch details are typically well-telegraphed by the supply chain, the upcoming event could still hold surprises related to hardware changes and pricing that might create modest upside potential. With a market capitalization of $3.45 trillion and trailing twelve-month revenue of $408.62 billion, Apple maintains its position as a dominant player in the technology sector.

JPMorgan identifies two key aspects that could drive upside through the next fiscal year, with the first being the launch of the slimmer iPhone Air, which could appeal to a broader consumer demographic despite likely having features more similar to base iPhone models than Pro versions.

The firm indicates that while supply chain expectations for iPhone Air volumes have moderated to 10-15 million units in the second half of the calendar year, there remains potential for positive surprises from consumer reception.

Pricing will play a particularly important role in demand, especially in the China market where smartphones priced under CNY 6,000 ($840 USD) qualify for a 15% discount, with the breadth of Apple’s offerings in this price range potentially determining medium-term upside through year-end.

In other recent news, Apple is set to expand the reach of its music service by making its curated radio stations available on TuneIn, a digital radio platform. Starting Wednesday, these stations will be accessible to TuneIn’s 75 million monthly active users, marking the first time they will be available outside of Apple’s own app. In anticipation of Apple’s upcoming product launch event, Goldman Sachs has reiterated its Buy rating on Apple stock with a price target of $266.00. The event, scheduled for September 9, 2025, is expected to unveil new products, including the iPhone 17 series and an updated Apple Watch portfolio. BofA Securities also reiterated its Buy rating on Apple stock, maintaining a price target of $250.00. The iPhone 17 launch is anticipated to include a significantly thinner version of the device, with pre-orders possibly beginning shortly after the event. These developments come as global funds have shifted their focus to the semiconductor sector, investing $27.2 billion, while reducing positions in industrials and healthcare.

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