On the eve of Apple's iPhone launch event on September 9th, Wall Street continues to raise its expectations, but there is a growing divergence regarding whether its high valuation can still support further increases in the stock price. The latest update from Rosenblatt Securities has raised Apple's target price from $300 to $303, while maintaining a "neutral" rating.
The target price is still lower than the current price.
Rather than the target price being raised by only $3, what attracts more attention is the fact that this target is still below Apple's current trading range. The report mentions that before the opening of U.S. stocks on Tuesday, Apple was priced around $316 to $320, which means that a target price of $303 is about 4% to 5% lower than the current price.
This also makes the cautious attitude of Rosenblatt even more evident. The institution believes that Apple may alleviate the pressure of supply chain costs by raising prices and increasing the proportion of high-end products.
Wall Street divisions widen
Compared to Rosenblatt, some institutions are clearly more optimistic. Bank of America Securities reiterated its 'buy' rating on Tuesday and set a target price of $380, which implies a potential upside of nearly 20% from the current level.
The core of the market debate is whether Apple can continue to maintain a price-earnings ratio of about 33 times expectations amidst rising component costs and intensified competition from AI. Investors are observing whether the company can still come up with strong enough new growth points.
New CEO welcomes its first press conference
This analyst update coincides with the first day of John Ternus taking on the role of CEO at Apple. Apple officially completed the management transition on September 1st, with Tim Cook stepping down to become the Executive Chairman after 15 years in charge of the company. Apple announced the succession plan as early as April this year.
For Ternus, there isn't much time left for the market to observe. Apple has confirmed that it will hold a special event at 10 a.m. on September 9th, Pacific Time, which will be the first major public product launch he will lead since taking on the role of CEO.
High-end product line under pressure
The market's expectations for this press conference are not just about a regular smartphone update. Investors are more keen to see whether Apple can use high-end hardware, new product forms, and the AI feature to drive a new round of device replacement cycles.
Supply chain costs remain another challenge that Apple is currently facing. Reports indicate that rising prices of memory and other components are highlighting the importance of maintaining high-priced models and optimizing product portfolios. If the high-end product line performs better, Apple will have a chance to maintain its profit margins even with modest growth in shipments.
Additional information:The report also mentioned that Apple previously launched rental arrangements related to Klarna in the United States, aiming to lower the barrier to purchasing high-priced devices through monthly payments; in July of this year, the company's market value briefly approached $5 trillion, and it once again retook the position of the world's largest publicly traded company by market value.
