Bank of America increased its price target for Apple (NASDAQ:AAPL) to $256 from $230, citing increased confidence in a multi-year iPhone upgrade cycle.
BofA analysts highlighted that they are raising their price target due to the anticipated boost in iPhone upgrades driven by an aging installed base and new GenAI features. The survey, conducted across the US, UK, China, and India, revealed that many iPhone users still operate older models. Specifically, 29% own an iPhone 13, 13% have an iPhone 12, and over 31% use an iPhone 11 or older.
The recent Worldwide Developers Conference (WWDC) has heightened customer intentions to upgrade in 2024, supported by robust services growth and margin expansion. Consequently, BofA reiterated its Buy rating for Apple.