Bank of America Lowers Apple Price Target to $370
BofA Securities analyst Wamsi Mohan lowered the price target on Apple (NASDAQ: AAPL) to $370 (from $380) while maintaining a Buy rating.
“In his first major product launch as CEO, Mr.
Ternus emphasized Apple’s long-standing focus on building reliable products that combine hardware, software and services to deliver differentiated user experiences. The event helped showcase Mr.
Ternus’s personality and his focus on Apple’s core values and continuing to create products that delight customers.
He framed products as the center of user experience, specifically referring to the iPhone as an “intelligent personal hub” that can understand personal context, with AI unlocking a new level of capabilities.
The new iPhones will allow AI models to run on-device, while using Private Cloud Compute for more complex requests.
Over time, we see Siri AI becoming more capable and personalized while protecting user data. Reiterate Buy.
Pricing on the new iPhones came in lower than we had expected, which can drive higher units but put some pressure on GM given higher memory/component costs.
We adjust our ests (Fig 1), and our PO moves to $370 (from $380) on 37x (unchanged) C27E EPS of $9.98 (prior $10.32) on slightly lower GM.”
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