TD Cowen ups Apple price target to $250 on Apple Intelligence catalyst

Investment firm TD Cowen has increased its price target for Apple shares to $250 from $220, anticipating strong performance in the upcoming earnings report. The firm believes that artificial intelligence will be a significant growth driver for the tech giant.

Analyst Krish Sankar expects Apple to report in-line results with potential headwinds from China competition and macroeconomic factors. However, he maintains a bullish outlook on iPhone sales, forecasting annual replacement demand of approximately 220 million units. Sankar views Apple’s forthcoming Apple Intelligence suite as a key catalyst for sustaining iPhone demand.

“We expect AAPL to report in-line results and outlook as NT headwinds could include modest China market share loss to Huawei devices, macro impact on consumer demand and FX. Potential key drivers of iPhone demand in C2H include emerging markets (EM) and upgrades to support early Gen AI features,” Sankar wrote in a note to clients.

With the new price target, TD Cowen implies a potential upside of nearly 15% from Friday’s closing price. The firm has reiterated its “buy” rating on Apple stock.

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MacDailyNews Note: Apple is scheduled to release fiscal third quarter results and business updates on Thursday, August 1, 2024, after market close, right around at 1:30 p.m. PT / 4:00 p.m. ET. The company will hold a conference call with analysts thirty minutes later at 2:00 p.m. PT / 5:00 p.m. ET.
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