OpenAI seen preparing for 2027 IPO at $1 trln valuation- Reuters
Investing.com -- Bank of America analyst Wamsi Mohan raised the bank’s price target on Apple to $320 from $270 in a note on Wednesday, reiterating a Buy rating on the stock.
The move comes after BofA provided a new five-year outlook for the company that projects sustained growth across products and services, underpinned by the ecosystem, brand, and installed base.
“We present a long-term (next 5-year) framework for looking at Apple’s performance,” Wamsi said, citing both product and services revenue projections and “new products and services that the company may introduce in that timeframe.”
The bank called Apple an “eventual winner in AI at the edge” with “optionality from new products and markets.”
BofA updated its target based on “32x C27E EPS of $9.88 (prior 32x C26 EPS of $8.40)” and reflects “more confidence in our estimates” following the long-term analysis.
The bank now forecasts fiscal 2025 revenue and earnings per share of $418 billion and $7.41, respectively.
The analysts also model Apple’s earnings per share more than doubling over six years, forecasting $13.79 in EPS by calendar 2030, a compound annual growth rate of 14% from $6.29 in 2024.
“Our base case results in $13.79 in EPS for C30E,” BofA said, adding that its 2030 earnings sensitivity analysis implies Apple’s 2026 EPS is “worth $8.95,” suggesting upside to both Street estimates and the current share price.
For the near term, BofA expects strength in sales of the iPhone 17 Pro and Pro Max models, raising its fourth-quarter unit estimates to 57 million, above the Street’s 54 million.
The firm also sees “upside potential from better mix” and expects Apple to guide fiscal first-quarter 2026 revenue growth to “high single digits year over year.”