CUPERTINO (dpa-AFX) - On Monday, Apple's stock (AAPL) experienced an
increase following positive feedback from Wall Street analysts.

Morgan Stanley's analyst, Erik Woodring, reiterated his positive outlook on
Apple's stock and raised his price target to $273 from $216, endorsing Apple as
a 'top pick.'

Woodring mentioned in a client note, that Apple's AI technology, known as Apple
Intelligence, is expected to be a significant driver in a multiyear product
upgrade cycle, potentially boosting sales of iPhones and iPads over the next two
years.

As per Woodring's analysis, Apple is projected to ship nearly 500 million
iPhones over the next two years, indicating a 6% increase from the previous
record cycle. This could also lead to a 5% annual growth in iPhone ASP (average
selling price). Woodring further predicts iPhone shipments of 235 million units
in fiscal 2025 and 262 million in fiscal 2026, with the iPhone 16 series launch
marking the commencement of the upgrade cycle in mid-September.

Additionally, Loop Capital analyst Ananda Baruah upgraded Apple's stock to buy
from hold, setting a new price target of $300, up from $170. Baruah emphasized
the opportunity for Apple to establish itself as the preferred choice for
consumers in the realm of AI, particularly in driving iPhone upgrades. The
prospect of AI-enhancing iPhone upgrades positions Apple as a frontrunner in
generative artificial intelligence applications for consumers.

It's worth noting that the adoption of Apple Intelligence will necessitate users
to upgrade to an iPhone 15 Pro or a newer model, potentially contributing to a
positive mix shift and ASP growth for Apple. The estimates suggest that 66% to
69% of shipped iPhones in the financial years 2025 and 2026 will be new models,
hinting at a potential 4% to 5% annual iPhone ASP growth. Moreover, only 24% of
iPad models currently support Apple Intelligence, pointing towards a potential
'mini upgrade cycle' for the tablets and potentially shortening the iPad
replacement cycles to 3.8 years, according to AppleInsider.

AAPL is trading on the Nasdaq at $234.38, up %1.70 or $3.80 per share. It has
traded between $164.08 and $237.23 in the past 52-week period.



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