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The stock has an average rating of “buy” with a median price target of $217, and has outperformed the S&P 500 index this year, according to LSEG data. | (Photo: Reuters)
Apple’s shares rose 2.5 per cent to a record high on Monday after Morgan Stanley raised its price target on the iPhone maker’s shares and designated the stock as a “top pick,” citing the company’s AI efforts as a boost to device sales.
In what was seen as a move to catch up with Alphabet’s Google and Microsoft-backed OpenAI, the iPad maker last month unveiled Apple Intelligence, luring customers to upgrade their devices to be able to use the new technology.
Apple’s shares, which have jumped nearly 20 per cent this year, rose to $236.30, giving the company a market value of $3.62 tn, the highest in the world.
“Apple Intelligence is a clear catalyst to boost iPhone and iPad shipments,” Morgan Stanley analysts said.
The new technology is compatible with only 8per cent of iPhone and iPad devices and Apple has 1.3 bn units of smartphones currently in use by customers, the analysts said, adding that the company could sell nearly 500 mn iPhones over the next two years.
Morgan Stanley, which previously expected Apple to sell between 230 mn and 235 mn iPhones annually over the next two years, raised its price target on the company’s shares to $273 from $216.
The stock has an average rating of “buy” with a median price target of $217, and has outperformed the S&P 500 index this year, according to LSEG data.
Industry analysts expect Samsung and Apple to lead the charge in global smartphone market recovery this year given the buzz around GenAI-enabled smartphones.
Apple sold 45.2 mn smartphones globally in the three months ending June, up from 44.5 mn a year earlier, but its market share fell to 15.8 per cent from 16.6 per cent in the same period, according to IDC data.
(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)
First Published: Jul 15 2024 | 9:00 PM IST
