Apple’s (NASDAQ:AAPL) global fanbase is looking forward to September 9, when the launch of the new iPhone 16 will take place. Apple is hoping the latest iteration of its flagship product will kick into action a new growth cycle given the prominent part AI is set to play this time around.
According to Tigress Financial’s Ivan Feinseth, a 5-star analyst rated in the top 3% of the Street’s stock pros, growth is indeed on the horizon.
“The new Apple Intelligence-enabled iPhone 16 will drive a significant new upgrade cycle,” Feinseth opined. “The integration of Apple Intelligence across new products and services will be a significant growth driver of both new product sales and Services revenue.”
Driven by its history of innovation and investment in AI machine learning, Feinseth thinks Apple Intelligence will “transform how AAPL users interact with technology.” Apple Intelligence offers writing tools, an image playground, and advanced features to help summarize and prioritize notifications, alongside a more natural, personalized, and practical Siri. Considering Apple’s positioning, the “extraordinary possibilities” of AI and its capacity to enhance customers’ lives are set to be extremely beneficial to the company. Moreover, to unlock its full potential, the company will keep making substantial investments in AI tech.
But it’s not just the iPhone getting a makeover. At the launch event – called It’s Glowtime – wearable devices are set for significant upgrades. The Apple Watch Series X models are anticipated to be slimmer with larger displays. Apple is also refreshing its AirPods lineup, introducing new low-end and mid-tier versions. Notably, noise cancellation is expected to be featured on the mid-level AirPods for the first time, and the entry-level model will receive its first update since 2019.
This “broad product upgrade cycle” should help fuel growth, while Apple Intelligence’s integration should have a positive impact on the “highly profitable” Services business.
Accordingly, Feinseth rates AAPL shares as a Strong Buy and raises his price target from $245 to $295. This new figure allows for potential 12-month returns of 28%. Feinseth also hints that the developments mentioned above could drive an even greater upside beyond his current projections. (To watch Feinseth’s track record, click here)
Looking at the broader sentiment on Wall Street, Feinseth is joined by 23 other analysts in the AAPL bull camp. With an additional 9 Holds and 1 Sell, Apple stock claims a Moderate Buy consensus rating. Based on the $249 average price target, shares are expected to trade at an 8% premium a year from now. (See Apple stock forecast)
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Disclaimer: The opinions expressed in this article are solely those of the featured analyst. The content is intended to be used for informational purposes only. It is very important to do your own analysis before making any investment.
