apple AAPL stock rose on Thursday after BofA Securities turned positive on the consumer electronics maker, citing artificial intelligence and the company's upcoming Vision Pro headset as sales drivers.
BofA analyst Wamusi Mohan upgraded Apple's stock to buy from neutral and raised his price target from $208 to $225.
On the stock market today, Apple shares rose 3.3% to close at 188.63. On a positive note, Apple stock broke out of the downtrend line on Thursday. It is currently trying to regain its 50-day moving average.
In a customer note, Mohan said the “iPhone upgrade cycle will become more robust over the years” as consumers replace older phones to take advantage of generative AI features coming this year and next. I predicted it.
Apple's Vision Pro spatial computing headset should also lead to increased sales, he said. Pre-orders for this device will begin on Friday, and product launch will begin on February 2nd.
Apple stock upgrade follows two downgrades
Mohan also expects services growth to increase further as Apple improves monetization of its installed base.
Additionally, he said the risks related to legal issues facing the company are “manageable.” These legal issues include antitrust litigation and patent infringement litigation.
Meanwhile, Apple stock sentiment will become more positive as investors' attention shifts to the launch of Apple Vision Pro and the AI-powered iPhone, he said.
Earlier this month, investment banks Barclays and Piper Sandler downgraded Apple's stock over concerns about weak iPhone sales.
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