UBS maintains Apple stock rating at Neutral with $220 price target

Investing.com - UBS maintained its Neutral rating and $220 price target on Apple (NASDAQ:AAPL), the $3.48 trillion market cap technology giant, following the launch of the iPhone 17 series. According to InvestingPro data, Apple maintains strong financial health with a "GOOD" overall score.

The investment firm noted that Apple has replaced the underperforming "Plus" model with a newly designed "Air" model, which was widely anticipated in the market.

Apple’s pricing strategy shows mixed changes, with the base iPhone 17 and Pro Max models maintaining last year’s prices at $799 and $1,199 respectively, while the Pro model increased by $100 to $1,099 and the new Air model starts at $999 compared to $899 for the previous 16 Plus.

UBS pointed out that despite price increases for some models, Apple eliminated the 128GB base configuration that was offered last year, meaning that on a like-for-like storage basis, pricing effectively remained unchanged compared to previous models.

The firm calculates that assuming the same production and sell-through mix as last year, with the Base and Pro Max accounting for approximately two-thirds of iPhone sales, blended pricing could increase roughly 3.5% year-over-year, while higher storage configurations could increase the blended iPhone bill of materials by around 1.5-2.0%.

In other recent news, Apple has been the focus of several analyst updates and product launches. Wedbush maintained its Outperform rating on Apple, highlighting a $270 price target due to the significant upgrade potential among iPhone users. Rothschild Redburn raised its price target for Apple to $260 from $230, citing a strengthening hardware focus and positive reception of the new iPhone Air model. Similarly, Evercore ISI increased its price target to $260 from $250, noting form factor changes in the iPhone lineup that could drive an upgrade cycle. HSBC reiterated its Hold rating and $220 price target after Apple’s iPhone 17 launch, which featured hardware improvements that met market expectations.

The iPhone 17 series, unveiled at Apple’s recent product keynote, includes a new Center Stage front camera, larger display with ProMotion technology, and enhanced durability with Ceramic Shield 2. The iPhone Air, part of this new series, was noted for its 5.6mm thickness. These developments indicate a continued focus on innovation and user experience in Apple’s product offerings.

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