Buy Rating Affirmed for Apple on New AI Capabilities and Strategic Partnerships

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Analyst Wamsi Mohan from Bank of America Securities maintained a Buy rating on Apple (AAPLResearch Report) and keeping the price target at $230.00.

Wamsi Mohan has given his Buy rating due to a combination of factors, including the introduction of Apple Intelligence, which is set to enhance productivity on Apple devices capable of supporting it. The new AI capabilities, which will be available on the latest iPhone and iPad/Mac models with the M1 chip, are anticipated to drive a multi-year upgrade cycle as consumers seek to leverage the innovative features that improve personal productivity. Additionally, Apple’s commitment to privacy, with a system that utilizes on-device processing and a “Private Cloud Compute” for more complex requests, aligns with consumer privacy concerns while offering advanced AI functionality.

Moreover, the partnership with OpenAI to integrate ChatGPT into Siri is a significant move that could further entice users to the Apple ecosystem. This integration, which allows seamless access to sophisticated AI without storing user data on servers, underscores Apple’s focus on user privacy. Coupled with the expansion of Vision Pro to international markets and the rollout of new operating systems, Apple is poised for continued growth in services and potentially lucrative monetization opportunities. These strategic developments, along with a solid financial outlook as indicated by consensus earnings projections, underpin Mohan’s positive valuation and justify the Buy recommendation with a price objective of 230.00 USD.

In another report released today, Goldman Sachs also maintained a Buy rating on the stock with a $238.00 price target.

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Apple (AAPL) Company Description:

Apple, Inc. designs, manufactures, and sells smartphones, personal computers, tablets, wearables and accessories. It also offers a range of related services. Its products include iPhone, Mac, iPad, Apple TV, Apple Watch, Beats products, HomePod and AirPods. The services segment is comprised of AppleCare, cloud services, digital content offerings like the App Store and other content services like Apple Arcade, Apple Music, Apple News+, Apple Fitness+ and Apple TV+, payment services such as Apple Card and Apple Pay as well as advertising and licensing services. The company was founded by Steven Paul Jobs, Ronald Gerald Wayne, and Stephen G. Wozniak on April 1, 1976 and is headquartered in Cupertino, CA.