Wedbush technology analyst Daniel Ives has raised his 12-month price target for Apple Inc (NASDAQ:AAPL, ETR:APC) to US$325 from US$300, citing expectations of heightened demand for AI-enhanced iPhones.
The new target represents a 26% increase from Tuesday’s closing price of $258.20, which is the highest among the 53 analysts surveyed by FactSet, where the average target stands at $247.58.
“We believe Apple is heading into a multi-year AI-driven iPhone upgrade cycle that is still being underestimated by the street,” he said.
Apple's stock eased slightly by 0.1% to $358.07 on Thursday, following a four-day gain of 4.1% that set a record closing price earlier this week. Despite a 34% rise in the stock price in 2024, Ives asserts that Apple remains undervalued due to the underappreciated growth potential of its AI-driven iPhone upgrade cycle.
Ives projected Apple will achieve iPhone unit sales of 240 million in fiscal year 2025, potentially the highest in its history.
Among the 53 analysts covering the stock, 34 recommend a "buy," 16 remain neutral and only three express bearish sentiments. Ives' forecast aligns with his earlier comments predicting robust Christmas sales as a catalyst for Apple's growth.
Fixes coming soon for Apple's latest software
Apple is reportedly preparing to release iOS 18.2.1, an update intended to address issues from the recent major iOS 18.2 release, which introduced Apple Intelligence.
According to MacRumors, the information was shared by an anonymous but credible source who also provided the build number, 22C161.
The update is expected to focus on fixes, with no new features included. Common problems in iOS 18.2 include battery performance issues and Face ID malfunctions.
The rapid rollout of iOS 18.2.1 has been noted as unusual with iOS 18.2 having been released on December 11.
While some reports suggest the update could arrive as early as December 31, others believe a January release, around January 6 to 7, is more likely, considering the holiday period.