Wamsi Mohan, an analyst from Bank of America Securities, reiterated the Buy rating on Apple (AAPL – Research Report). The associated price target was lowered to $250.00.
Wamsi Mohan has given his Buy rating due to a combination of factors including the recent significant decline in Apple’s stock price, which has dropped more than 25% year-to-date. This decline is seen as an enhanced buying opportunity for investors to acquire a high-quality stock like Apple. The stock’s forward P/E ratio falling below 25x is historically associated with favorable risk/reward scenarios, suggesting potential for strong future performance.
Additionally, Mohan points out that Apple’s stable cash flows and earnings resiliency, along with its potential benefits from AI advancements, support the Buy rating. Despite geopolitical uncertainties and tariff risks, Apple has strategies to mitigate these risks, such as diversifying its supply chain and adjusting pricing strategies. Historically, Apple’s stock has shown positive returns over the long term following P/E compression events, reinforcing confidence in its future performance.
In another report released today, Morgan Stanley also maintained a Buy rating on the stock with a $220.00 price target.