Apple shares achieved a new record high on Monday (Tuesday AEDT) after Loop Capital upgraded its rating on the stock from hold to buy. This decision reflects growing confidence in iPhone demand. Shares of Apple increased by as much as 3.1 per cent, reaching $US260.20 ($400) and surpassing the previous all-time high set in December. Apple, a prominent underperformer among S&P 500 Index stocks for much of the year, had fallen by as much as 31 per cent at its lowest point in April. However, the iPhone maker has since rebounded, soaring more than 50% and turning positive for the year in late September. Apple designs, develops, and sells consumer electronics, computer software, and online services. Its products include the iPhone, iPad, Mac, Apple Watch, and AirPods.
The recent surge in Apple’s stock price is attributed to indications of stronger-than-expected demand for the latest iPhone 17 lineup. This has fueled hopes for a long-awaited upgrade cycle. An analysis by Counterpoint Research revealed that the iPhone 17 series outsold the iPhone 16 by 14 per cent during their first 10 days of sales in the US and China.
Loop Capital analyst Ananda Baruah stated in his upgrade note, “We are now at the front end of Apple’s long-anticipated adoption cycle.” Baruah believes this is due to a combination of a refresh cycle and demand catalysed by new design cycles. He also increased his price target to $315, which is the highest target on Wall Street, suggesting a potential upside of approximately 25 per cent from Friday’s closing price.
