Apple Stock Has More Upside: Analyst Says 'The Street is Clearly Underestimating This iPhone Cycle'

Core Viewpoint - Apple Inc is experiencing strong early demand for the iPhone 17, prompting analysts to highlight potential upside in the company's shares [1] Analyst Ratings - Bank of America analyst Wamsi Mohan reiterated a Buy rating on Apple with a price target of $270 [1] - Wedbush analyst Dan Ives maintained an Outperform rating and raised the price target from $270 to $310 [1] Shipping Times and Demand - iPhone 17 Pro and Pro Max shipping times are in line with last year's models, but several other models are seeing extended lead times [2] - Shipping times for the iPhone 17 are highest in China, with other regions also experiencing longer shipping times compared to the iPhone 16 [2] - The availability of the iPhone Air raises questions about whether it is due to demand or high supply [2] Upgrade Cycle and Demand Trajectory - Strong demand for the iPhone 17 could lead to a significant upgrade cycle for Apple, with units tracking 10%-15% ahead of the iPhone 16 [3][4] - The combination of pent-up consumer demand and design enhancements has contributed to this positive demand trajectory [4] - Street estimates of 230 million iPhones sold in fiscal 2026 may be conservative, with expectations of 240 million to 260 million instead [4] Market Dynamics and AI Strategy - Strong demand in China could offset negative growth trends and provide a rebound into fiscal 2026 [5] - Apple is positioned to capitalize on its AI strategy, with potential to add $75 to $100 per share as AI monetization unfolds [5][6] - The "AI premium" is not yet reflected in Apple's stock, making it a key tech investment for the upcoming years [7] Stock Performance - Apple stock is up 3.83% to $254.72, with a year-to-date increase of 4.37% in 2025 [7]