Bank of America publishes an optimistic valuation of the shares of the technology giant Apple, as reported by “Business Insider”. After that, Apple's future earnings could significantly exceed stock market investors' current expectations. The bank's analysts see potential for a share price rise of up to 28 percent. If the forecast comes true, the share price of the iPhone manufacturer would rise to around $225 (about 210 euros).
Apple could take more advantage of cost advantages
The report quotes analyst Wamsi Mohan, who attributes high growth opportunities to Apple. This clearly differentiates the expert from the market. Apple's share price fell about nine percent this year. Investors are concerned about the source of future growth.
Apple currently has little to offer in the field of AI. However, expert Mohan highlights that Apple has opportunities to significantly increase its profits.
Mohan sees advantages in Apple's special mix of products. In his opinion, there are also growth opportunities in the field of services. According to the report, expert Mohan justifies this by the low costs of providing data centers operated by Apple.
Apple pulls the value chain towards itself and does more and more for itself
According to Mohan, the use of self-developed chips and reducing dependence on public cloud providers will result in greater cost savings for Apple. All of this offers opportunities for the group led by Tim Cook to exceed Wall Street expectations.
A key aspect of this is the expansion of Apple services. The expert mentions here the expected iPhone with AI functions in the future. Additionally, price increases for the more expensive “Pro” iPhone models could boost earnings more than currently expected. Bank of America remains bullish on Apple stock, reiterating its “buy” rating with a $225 price target.
Apple among the most valuable companies in the world
Despite current price weakness, Apple remains one of the most valuable companies in the world. Apple currently has a market capitalization of almost 2.5 trillion dollars (about 2.35 trillion euros).
Sales amounted to around $383.3 billion in the financial year 2023. According to “Statista”, the annual profit amounted to about $97 billion. This results in a good quarter profit margin.
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