Banking giant sets Street-high price target for Apple stock

Core Viewpoint - Bank of America raised Apple's price target to $320 from $270, indicating strong fundamentals and growth prospects, with a potential rally of about 19% from the last closing price of $269 [1][5]. Group 1: Financial Projections - For fiscal year 2025, Apple is projected to achieve revenues of $418 billion and earnings per share (EPS) of $7.41 [5]. - The new price target of $320 is based on a multiple of 32 times the projected 2027 EPS of $9.88, an increase from 32 times the 2026 EPS of $8.40 [5]. Group 2: Competitive Advantages - Apple's robust ecosystem, brand strength, and large installed customer base are highlighted as key competitive advantages [3]. - The company is strategically positioned in artificial intelligence (AI), with potential opportunities in AI-augmented eyewear, in-house AI robots, and smart home devices [4][5]. Group 3: Market Performance - Apple shares recently set a record high, briefly surpassing a $4 trillion market capitalization, placing it alongside Nvidia and Microsoft [6]. - iPhone 17 sales have outpaced the previous year's iPhone 16 lineup by 14% in the first 10 days of availability in the U.S. and China, driven by strong demand for the base iPhone 17 and 17 Pro models [7]. Group 4: Revenue Contribution - iPhone demand remains central to Apple's growth, contributing more than half of its total revenue of $391 billion for 2024 [8].