Evercore ISI has expressed a positive outlook on Apple Inc., maintaining an outperform rating and increasing its 12-month price target from $330 to $365, indicating a potential upside of 22% from the stock's recent closing price.
Analyst Amit Daryanani highlighted that despite investor concerns regarding short-term memory chip shortages and the timing of Apple Intelligence, the company's strong ecosystem is expected to drive sustainable revenue growth in the mid to high single digits and earnings growth in the low to mid-teens.
Apple has recently alleviated fears about the impact of memory shortages on its upcoming smartphone launches and its advancements in artificial intelligence. The stock has performed well, gaining 15.5% over the past month, significantly outperforming the S&P 500, which has risen less than 7%.
Evercore ISI also noted that Apple's services segment, which includes offerings like Apple Music and iCloud, will contribute to profitability and mitigate any negative effects from memory supply issues. Additionally, the anticipated release of several high-end iPhones, including a foldable model, is expected to enhance gross margins.
The potential for monetization through artificial intelligence is also seen as a significant opportunity for Apple. This optimistic view aligns with the broader Wall Street consensus, where 33 out of 48 analysts rate Apple as a buy or strong buy