On Tuesday, BofA Securities reiterated its confidence in Apple Inc. (NASDAQ:AAPL), maintaining a Buy rating and a $230.00 stock price target for the tech giant's shares. The firm's stance comes after an analysis of recent App Store revenue data which indicated a positive trend.
According to SensorTower, App Store revenues for the third fiscal quarter saw a 13% year-over-year increase, reaching $7.5 billion. This growth was accompanied by a 3.2% rise in total downloads for iPhone and iPad, totaling 8.4 billion for the quarter.
The positive revenue trajectory continued into June, with global App Store revenues climbing 13% compared to the same period last year. Notably, China, a key market for Apple, also experienced a 10% year-over-year increase in App Store revenues during June. These figures underscore the sustained demand for Apple's digital offerings across diverse markets.
Furthermore, the third fiscal quarter of 2024 highlighted an increase in the amount of money generated per App Store download. The figures showed a 9.5% year-over-year increase in dollars earned per download, which suggests that users are spending more per transaction on the platform.
BofA Securities' valuation of Apple's stock remains pegged at 30 times the estimated corporate earnings per share (EPS) for calendar year 2025, which stands at $7.76. The firm's analysis and consequent price objective have remained unchanged, reflecting a steady outlook for Apple's financial performance based on the latest data.
The continued endorsement of a Buy rating indicates BofA Securities' expectation of Apple's share value to meet or exceed the $230.00 target.
In other recent news, KeyBanc Capital Markets maintained its Sector Weight rating on Apple Inc., citing an increase in iPhone 16 production forecasts and recent financial data. However, the firm expressed caution about Apple's near-term growth prospects, suggesting that expectations for a rise in U.S. upgrade rates might be overly optimistic. Apple has also been accused by Epic Games of preventing the launch of its game store on iOS devices in Europe, a matter now brought to the attention of the European Commission.
In other developments, Apple has secured an observer role on OpenAI's board, marking a significant step in the tech industry. This follows Apple's integration of OpenAI's ChatGPT chatbot into its devices. In the legal realm, a former senior lawyer at Apple, Gene Levoff, has been ordered to pay a $1.15 million fine for insider trading in a civil case brought by the U.S. Securities and Exchange Commission.
These are part of the recent developments affecting Apple, as analysts from Wells Fargo Investment Institute suggest investors to reallocate gains from the technology and communication services sectors to potentially softer sectors. This advice comes in light of the upcoming earnings season, which will be critical in aligning profit growth with the performance of tech giants such as Apple.
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