Wedbush analyst Daniel Ives has expressed bullish sentiment towards Apple’s (NASDAQ:AAPL) stock ahead of the company’s highly anticipated Worldwide Developer Conference (WWDC) scheduled for June. Ives highlighted Apple’s effective strategy of reducing prices, which has reportedly stabilized iPhone sales according to recent supply chain checks. On May 24, Ives reiterated a Buy rating on AAPL stock and raised its price target from $250 to $275.
With an impressive success rate of 83% on AAPL stock, Ives’ track record suggests that following his trades and holding each position for one year could result in 83% of transactions generating a profit, with an average return of 16.52% per trade.
Despite facing pressure and experiencing a decline of approximately 10% in Q2 of Fiscal 2024, Apple’s iPhone sales have shown signs of stabilization, thanks to aggressive discounting campaigns on certain iPhone models. These price cuts were implemented to safeguard Apple’s market share against local rivals in China, demonstrating the company’s proactive approach to market challenges.
Looking ahead to the WWDC event in June, Ives anticipates Apple unveiling its artificial intelligence (AI) initiatives, along with a potential partnership announcement with OpenAI. Apple has faced criticism for its slow progress in AI advancements, prompting the company to actively pursue partnerships and acquisitions of smaller AI startups such as Datakalab and DarwinAI. Additionally, Apple has been exploring collaborations with Microsoft-backed OpenAI and Google to enhance its AI capabilities.
The potential collaboration with Google or OpenAI could significantly impact Apple’s AI strategy, with analysts expressing optimism about AAPL’s partnership with Google. However, it remains to be seen which direction Apple will take.
Following Apple’s solid second-quarter financial results and announcements of a massive $110 billion buyback plan and increased quarterly dividend, AAPL stock has surged over 12%. Despite softness in hardware sales, Wall Street remains cautiously optimistic about Apple’s prospects.
As of now, AAPL stock holds a Moderate Buy consensus rating, with 21 Buy, 11 Hold, and one Sell recommendation from analysts. The average price target for AAPL stock is $204.77, implying a 7.79% upside potential from current levels.