BofA maintains Buy rating on Apple stock with no change in price target

BofA Securities has maintained a positive outlook on Apple Inc. (NASDAQ:AAPL), reiterating a Buy rating and a $256.00 price target for the tech giant's stock.

The endorsement follows an analysis of iPhone shipping times from Apple's website and various carrier sites. Compared to the same period last year, shipping times for the newly released iPhone 16 Pro and Pro Max models are extended, yet shorter on average than their predecessors at this point in their launch cycle.

The data shows that the average global shipping time for the iPhone 16 Pro is currently at 14 days, a decrease from the 27 days observed for the iPhone 15 Pro.

Meanwhile, the iPhone 16 Pro Max has a shipping time of 21 days, compared to 37 days for the iPhone 15 Pro Max at the same time last year. The iPhone 15 Pro Max had experienced supply issues, particularly with camera modules, which contributed to the longer lead times previously seen.

BofA Securities suggests that Apple may have increased production for the Pro models this year, which could be a factor in the reduced shipping times. The firm's stance on Apple's stock is supported by the anticipated multi-year iPhone upgrade cycle, potential tailwinds to gross margins, and Apple's robust cash flow.

In other recent news, Apple Inc. has been the subject of various analyst reviews following the launch of the iPhone 16. Goldman Sachs reaffirmed its Buy rating and $276.00 price target, citing shorter delivery lead times for the new model, which could be influenced by the lean channel inventory Apple had before the launch.

Meanwhile, Barclays reiterated its underweight rating, pointing to a softer demand for the new iPhone model. Evercore ISI, Morgan Stanley, and CFRA maintained their positive ratings on the tech giant's shares, with Evercore ISI and Morgan Stanley setting price targets of $250 and $273 respectively.

In the face of supply chain issues, Huawei Technologies launched the Mate XT, a high-end smartphone with a tri-fold design, despite receiving 6.5 million pre-orders, production yield issues might limit the initial production to 500,000 units.

Regulatory actions have been initiated against Apple by the European Commission to ensure compliance with the Digital Markets Act, focusing on iOS and iPadOS systems' interoperability with smartwatches, headphones, and other internet-connected devices.

InvestingPro Insights

Reflecting on the latest analysis by BofA Securities regarding Apple Inc.'s (NASDAQ:AAPL) promising iPhone shipping times and demand, the financial data from InvestingPro further bolsters the optimistic outlook. Apple's market capitalization remains robust at $3.47 trillion, underscoring its dominance in the market. The company's P/E ratio stands at 34.36, indicating a high earnings multiple which aligns with BofA's positive stance. Moreover, Apple has demonstrated a strong gross profit margin over the last twelve months as of Q3 2024, at 45.96%, reinforcing its financial health and operational efficiency.

InvestingPro Tips highlight Apple's consistent track record, having raised its dividend for 12 consecutive years and maintaining dividend payments for 13 consecutive years, which could appeal to income-focused investors. Additionally, the tech giant has been trading near its 52-week high, reflecting the market's confidence in its value and growth potential. For readers interested in deeper financial insights and additional tips on Apple, InvestingPro offers 17 more tips that can be explored at https://www.investing.com/pro/AAPL.

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