Itau BBA Upgrades Apple (AAPL) to Market Perform, 'Despite the Many Risks, the Cycle Is Now Turning'
Itau BBA analyst Thiago Kapulskis upgraded Apple (NASDAQ: AAPL) from Underperform to Market Perform with a price target of $188.00.
"For almost three years, including the whole time of covering the stock at Itaú BBA, we have had a bearish view on AAPL. Despite being challenged several times on TV as one of the few analysts with a negative rating on AAPL, we had the right call. Since our initiation of coverage in July 2022, the stock has gained only 32%, significantly below the 51% for QQQ and all other U.S. tech stocks under our coverage.
While proud of our call, the time has come to move on and upgrade AAPL to market perform, with a new YE24 target price of USD 188/share (from USD 162 previously). There are two reasons for the change in our opinion. The first is a potential turn in the negative smartphone cycle for the first time since 2022. While total revenues are still down 4% YoY, the numbers in China were a positive surprise, down by only 8% YoY and improving from the 13% YoY decline reported previously. Furthermore, the low single-digit revenue guidance for 2Q24 (despite the 2.5-pp FX headwind) indicates a turn toward a less unfavorable top-line momentum."
For an analyst ratings summary and ratings history on Apple click here. For more ratings news on Apple click here.
Shares of Apple closed at $173.03 yesterday.