Apple’s stock is up 25% from its April low. Analyst sees it adding another 25%

An analyst thinks Wall Street is still underestimating Appel Intelligence’s potential to drive iPhone, iPad, and Mac upgrades.
Emily Bary for MarketWatch:
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Apple Inc. is making up for time spent being seen as an artificial-intelligence laggard, with shares up more than 25% from their April lows in a move that partly reflects optimism about the latest AI announcements at WWDC.
But Apple shares AAPL may not be done seeing AI-fueled gains, according to Melius Research analyst Ben Reitzes, who boosted his price target on the stock to $260 from $227 in a Monday report. His new target implies about 25% upside from Friday’s close.
“While we like the AI story right now, we still think it ‘boils’ gradually as features are released, hitting its peak stride” in the next two fiscal years, Reitzes wrote.
The most appealing element of Apple’s AI strategy is that “almost everyone needs a new phone” to unlock Apple’s forthcoming AI features since the company has limited the functionality to iPhone 15 Pro models or better.
“We are fans of embracing the obvious, even from here, since the world’s most loyal install base has to upgrade to get AI — and we see [earnings-per-share] power going over $9,” Reitzes wrote. “While we have reflected several times on a potential surge akin to the 2014/2015 ‘big screen’ cycle, we really don’t recall a precedent like this — with so many new features only available in new phones.”

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MacDailyNews Take: As we wrote earlier this month, “On iPhone, Apple’s artificial intelligence – Apple Intelligence – will only work if you have an iPhone 15 Pro or iPhone 15 Pro Max or later. This situation should help spur a healthier iPhone upgrade cycle than we’ve seen over the past few years…”
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