Apple stock rose Thursday after BofA Securities turned positive on the consumer electronics maker, citing artificial intelligence and the company's upcoming Vision Pro headset as sales drivers.
BofA analyst Wamsi Mohan upgraded Apple stock to buy from neutral and raised his price target to 225 from 208.
Apple stock advanced 3.3% to close at 188.63 on the stock market today. In a positive sign, Apple stock broke through a downward trend line on Thursday. It now is trying to reclaim its 50-day moving average line.
In a client note, Mohan predicted a "stronger multiyear iPhone upgrade cycle" as consumers replace older handsets to take advantage of generative AI features coming this year and next.
Apple's Vision Pro spatial computing headset also should provide a sales lift, he said. Preorders for the device begin Friday, with product availability starting Feb. 2.
Apple Stock Upgrade Follows Two Downgrades
Mohan also forecast higher growth in services as Apple better monetizes its installed base.
Plus, risks around legal issues facing the company are "manageable," he said. Those legal issues include antitrust actions and patent infringement lawsuits.
Meanwhile, sentiment in Apple stock should turn more positive as investor attention shifts to the Apple Vision Pro launch and AI-enabled iPhones, he said.
Earlier this month, investment banks Barclays and Piper Sandler downgraded Apple stock on concerns over weak iPhone sales.
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