Apple’s stock can recover, despite embarrassing AI delays – analyst

Apple has faced significant criticism for postponing “Apple Intelligence” artificial intelligence enhancements, especially to its neglected Siri personal assistant. However, analysts at Melius Research, under the leadership of Ben Reitzes, argue that the stock still has potential for a rebound.
Brian Swint for Barron’s:
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Reitzes said the company’s upgrade to the iPhone X a few years ago offers lessons. In 2017, the introduction of larger screens and Face ID—which lets users unlock their device without pushing a button—allowed the company to significantly raise prices, though unit sales remained flat. Overall sales grew and the stock ended up adding 46% over the following 12-month period.
Apple could soon create a similar effect by mixing up its iPhone lineup and eventually adding foldable phones. Melius acknowledged the U.S. trade war with China is a problem for Apple, but things could improve if reports are confirmed that the company is working with retailer Alibaba to develop local AI services. There’s also a chance Apple will be able to negotiate an exemption from tariffs. 
What’s more, Apple has the best cash-flow generation among the biggest U.S. technology companies, the analysts said. That means the company will keep up its impressive pace of share buybacks for the foreseeable future.

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MacDailyNews Note: Reitzes currently has a 24-month price target of $290 on Apple shares.

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