BofA Securities has maintained a Neutral rating on Apple Inc. (NASDAQ: NASDAQ:AAPL) with a steady price target of $256.00.
The assessment followed a review of iPhone shipping times from Apple's website and various carriers, revealing that the iPhone 16 Pro and Pro Max models have extended ship times, although slightly less than the previous year's models at the same point in the pre-order cycle.
The report noted that the average ship time for the iPhone 16 Pro is currently 14 days, compared to 24 days for the iPhone 15 Pro at a similar stage.
Similarly, the iPhone 16 Pro Max has a current lead time of 19 days, down from 32 days for its predecessor. The analyst suggested that Apple may have adjusted its supply strategy towards the Pro models this year and mentioned that last year's supply for the iPhone 15 Pro Max was affected by issues with the tetraprism lens.
For the standard iPhone 16 and the iPhone 16 Plus, the lead times are slightly below those from the previous year, with the iPhone 16 at 10 days compared to 12 days, and the iPhone 16 Plus at 11 days versus 12 days for the last year's models.
In other recent news, Apple's iPhone 16 Pro Max is witnessing strong demand in China, with longer wait times compared to other models, according to a report by Jefferies. Concurrently, Citi maintains a 'Buy' rating for Apple's stock, setting a target at $255, undeterred by the European Union's court ruling that Apple must pay $14.4 billion in back taxes to Ireland. This decision is projected to impact Apple's earnings per share for fiscal year 2024 by approximately 10%.
Moreover, Apple's AirPods Pro have been authorized by the U.S. Food and Drug Administration as over-the-counter hearing aid software, a significant advancement in making hearing support more widely available. In the AI sector, OpenAI, the creator of ChatGPT, is undergoing a substantial financing round that could value the company at $150 billion, contingent on successful restructuring. Notably, Apple plans to invest in this round, alongside other key investors such as Thrive Capital, Khosla Ventures, and Microsoft (NASDAQ:MSFT).
InvestingPro Insights
As BofA Securities maintains a Neutral rating on Apple Inc. (NASDAQ:AAPL), investors might consider additional metrics that shed light on the company's financial health and market performance. With a towering market capitalization of $3.38 trillion, Apple stands as a heavyweight in the tech industry. The company's P/E ratio, a key indicator of investor expectations, stands at a high 33.71, suggesting that the market may have high expectations for future earnings growth despite a modest revenue growth of 0.43% over the last twelve months as of Q3 2024. This is complemented by a substantial gross profit margin of 45.96%, reflecting Apple's ability to maintain profitability in its operations.
Looking at the stock's stability, an InvestingPro Tip highlights that Apple's stock generally trades with low price volatility, which might appeal to investors seeking a more stable investment in the tech sector. Moreover, Apple's consistent dividend growth, with dividends raised for 12 consecutive years, could be a reassuring sign for income-focused investors. On the broader spectrum, there are over 15 additional InvestingPro Tips available for Apple, offering a more comprehensive view of the company's financial nuances and stock performance trends.
Apple's position as a prominent player in the Technology Hardware, Storage & Peripherals industry, coupled with its ability to consistently maintain dividend payments, underscores its financial resilience. As the company navigates the competitive landscape with its latest iPhone models, these financial metrics and InvestingPro Tips can provide investors with a deeper understanding of Apple's value proposition in the market.
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