Key Points:
- Apple’s stock surged 6% following better-than-expected earnings and the announcement of a $110 billion stock buyback program.
- The company reported $1.53 per share on revenue of $90.75 billion, exceeding analysts’ estimates.
- Bank of America raised its price target for Apple to $230 and expects the rollout of generative AI features for the iPhone.
- JPMorgan increased its price target to $225, citing resilient iPhone revenues and expectations of an upgrade cycle-led boost in iPads.
Apple’s stock price surged significantly on Friday, climbing 6% following the announcement of better-than-expected second-quarter earnings and the unveiling of the largest-ever stock buyback program in U.S. history. This marked the tech giant’s best day since November 30, 2022.
The company revealed its plan to repurchase $110 billion of its shares, surpassing its prior buyback initiatives. Additionally, Apple reported $1.53 per share on revenue of $90.75 billion, outperforming analysts’ estimates.
While the overall sales declined by 4% and iPhone sales dropped by 10% year over year, CEO Tim Cook attributed the decrease to a challenging comparison with the previous year’s performance. Despite this, analysts at Bank of America maintained their buy rating for Apple stock, considering it a top pick, and raised their price target to $230 from $225. They anticipate Apple rolling out generative artificial intelligence features for the iPhone this year.
Also maintaining an overweight rating, JPMorgan analysts increased their price target to $225 from $210, citing resilient year-over-year iPhone revenues and expectations of an upgrade cycle-led boost in iPads ahead of Apple’s upcoming product launch event.
Similarly, Morgan Stanley analysts retained their overweight rating for Apple and raised their price target to $216 from $210. They highlighted the company’s quarterly performance, growth in iPhone shipments to China in March, stock buyback program, and indications of forthcoming AI updates.
Analysts remain bullish on Apple’s prospects, foreseeing revenue growth opportunities driven by product cycles across hardware devices and an AI-led smartphone cycle. The buyback program and hints at AI advancements further bolster confidence in the company’s trajectory.
