Wedbush analyst Daniel Ives is bullish on Apple’s (NASDAQ:AAPL) stock ahead of the company’s upcoming Worldwide Developer Conference (WWDC) in June. The analyst said that Apple’s strategy of reducing prices is proving effective, as his recent supply chain checks showed stabilization in iPhone sales. Ives reiterated a Buy on AAPL stock on May 24. The analyst raised Apple stock’s price target to $275 from $250.
Don't Miss our Black Friday Offers:
- Unlock your investing potential with TipRanks Premium - Now At 40% OFF!
- Make smarter investments with weekly expert stock picks from the Smart Investor Newsletter
Ives has a success rate of 83% on AAPL stock. This implies copying Ives’ trades on APPL stock and holding each position for one year would result in 83% of your transactions generating a profit, with an average return of 16.52% per trade.
It’s worth noting that Apple’s iPhone sales were under pressure and declined about 10% in Q2 of Fiscal 2024, reflecting tough year-over-year comparisons and heightened competition in China. The company launched an aggressive discounting campaign on certain iPhone models to safeguard its market share against local rivals in China. These price cuts have led to signs of stabilization in iPhone sales.
Ives Expects Apple’s AI Announcements at WWDC
Ives expects Apple to disclose its artificial intelligence (AI) initiatives during the upcoming WWDC event in June. Moreover, he expects the tech giant to announce its partnership with OpenAI.
It’s worth noting that Apple has faced criticism for its slow progress in AI advancements, prompting the company to actively pursue partnerships and acquisitions of smaller firms to boost its AI capabilities. Apple reportedly acquired Datakalab and DarwinAI, two AI startups, to bolster its AI capabilities. Moreover, the company has been exploring a potential collaboration with Microsoft (NASDAQ:MSFT)-backed OpenAI and Alphabet’s (NASDAQ:GOOGL) Google to leverage their AI models into its products.
It remains to be seen whether Apple will partner with Google or OpenAI. According to the TipRanks Stock Analysis tool, “Bulls Say, Bears Say,” analysts are bullish on AAPL’s potential collaboration with Google, which could positively impact the company’s AI strategy.
Is Apple a Buy, Hold, or Sell?
Apple stock has jumped over 12% since the company reported solid second-quarter financials earlier this month. Moreover, it announced a massive $110 billion buyback plan and raised its quarterly dividend. Meanwhile, Wall Street is cautiously optimistic about its prospects amid softness in hardware sales.
Apple stock has 21 Buys, 11 Holds, and one Sell recommendation for a Moderate Buy consensus rating. The analysts’ average price target for AAPL stock is $204.77, implying a 7.79% upside potential from current levels.
