Apple Analyst Reaffirms Bullish Stance On Stock Ahead Of Key Holiday Season: Skeptic Retail Keeps Fingers Crossed Over Year-End Rally
By Stocktwits Inc | First Published Dec 2, 2024, 12:07 PM ISTBlack Friday that is now in the rearview mirror, kicks off an important holiday season for Apple.
Apple, Inc. ($AAPL) shares have gained about 24% this year, roughly in line with the broader S&P 500’s 26%+ advance. The year-to-date rise, however, pales before the Magnificent 7 group’s 55% jump, taking the Roundhill Magnificent Seven ETF ($MAGS) as a proxy.
Last Friday, a bullish analyst maintained an “Outperform” rating and $300 price target for the stock, suggesting scope for roughly 26.5% upside from current levels.
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Wedbush analyst Daniel Ives said Black Friday that is now in the rearview mirror, kicks off an important holiday season for Apple. His optimism is premised on the Apple Intelligence launching on the iPhone 16 this week with the release of the iOS 18.2 iteration.
The 18.2 will mark a significant software update for Apple Intelligence, bringing to the company’s flagship device a suite of artificial intelligence (AI) features, the analyst said.
Among the features that would be made available via iOS 18.2 are ChatGPT integration in Siri, Visual Intelligence, image playground, and other AI features, Ives noted.
Apple Intelligence will likely roll out in China and many other countries most likely by April, he added.
Apple bears and skeptics have largely ignored the massive installed base of over 2 billion iOS devices and 1.5 billion iPhones, Services business, which alone is worth up to $2 trillion in valuation, and the positive impact of consumer AI going through Apple ecosystem, Ives said.
Wedbush estimates iPhone sales north of 240 million units in fiscal year 2025 as the AI-driven upgrade cycle takes hold, marking a record yearly number.
“We believe the success of iPhone 16 with a strong holiday season ahead will be the launching pad for a renaissance of growth in Cupertino over the next 12 to 18 months,” Ives said.
Sentiment toward Apple stock continued to be ‘bearish’ (29/100) on Stocktwits, accompanied by ‘low’ volume.
A Stocktwits user pointed to a “double-top” technical formation on the Apple chart, suggesting an imminent pullback.
Another harbored hopes that a break above $238 could usher in a “‘Santa Claus” rally.
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