Analyst Krish Sankar of TD Cowen maintained a Buy rating on Apple (AAPL – Research Report), retaining the price target of $290.00.
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Krish Sankar has given his Buy rating due to a combination of factors associated with Apple’s latest iPhone 16e. The new model is expected to provide significant value to consumers with its larger form factor and advanced Apple Intelligence features, which are anticipated to enhance user experience. Additionally, the internal use of Apple’s proprietary 5G modem design is a notable advancement. This transition away from Qualcomm modems is projected to improve the iPhone’s gross margins by reducing modem costs by approximately 45%.
Moreover, the iPhone 16e’s starting price and features are positioned to appeal to a broad consumer base, especially in emerging markets where price sensitivity is a consideration. The hardware gross margin for the iPhone 16e is estimated at around 37%, which is higher than that of its predecessor, the SE3. This improvement is attributed to key component changes such as the larger OLED display and the inclusion of Apple’s 5G modem. These elements collectively make the iPhone 16e an attractive product in Apple’s lineup, justifying the Buy rating.
In another report released today, Goldman Sachs also maintained a Buy rating on the stock with a $294.00 price target.
Based on the recent corporate insider activity of 42 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of AAPL in relation to earlier this year.