Why so many upgrades to APPL stock in 2024?
Apple has received numerous upgrades and increased price targets in 2024 due to growing optimism about the company’s potential in artificial intelligence (AI) and the anticipated launch of AI-enabled iPhones. Here’s a list of notable upgrades and price target increases for Apple this year:
- Loop Capital upgrade (July 2024):
- Raised rating from “hold” to “buy”
- Increased price target to $300, the highest among analysts
- Morgan Stanley upgrade (July 2024):
- Raised price target from $216 to $273
- Designated Apple as their top pick in U.S. IT hardware
- Other analysts’ projections:
- CoinPriceForecast estimates Apple will reach $238 per share by July 2024 and $245 by the end of the year
- StockAnalysis predicts a price range of $164 to $275 for 2024, with an average price of $210.04
The reasons behind these upgrades and increased price targets include:
- AI potential: Analysts believe Apple is well-positioned to become a primary hub for users leveraging generative AI, similar to its past successes with the iPod and iPhone.
- New iPhone anticipation: The upcoming launch of AI-enabled iPhones is expected to drive significant sales growth.
- Projected revenue increase: Morgan Stanley analysts predict Apple could generate $485 billion in iPhone revenues over the next two years as users upgrade to AI-enabled devices.
- Global expansion: Apple’s success in markets like India, where it saw a 33% year-over-year growth in sales, has boosted investor confidence.
- Strategic AI moves: Apple’s recent acquisitions, partnerships with companies like OpenAI, and the announcement of its “Apple Intelligence” initiative have increased enthusiasm among investors.
- Strong subscription base: Apple has achieved 900 million subscriptions for its various services, demonstrating customer loyalty and potential for continued growth.
These factors have contributed to Apple’s stock reaching all-time highs, with its market capitalization surpassing $3.59 trillion. The upgrades and increased price targets reflect analysts’ optimism about Apple’s future performance and its potential to establish itself as a leader in the AI landscape
