Bank of America Analyst Sees Strong iPhone Cycle for Apple
Analyst Wamsi Mohan at Bank of America is optimistic about Apple's stock performance, citing a strong iPhone upgrade cycle driven by richer US carrier promotions. These promotions offer trade-in credits as high as $1,200 for newer iPhones, offsetting the higher prices this year.
The analyst expects a multiyear iPhone upgrade cycle, supported by higher average selling prices and adoption of the iPhone Duo. Apple's Siri AI features could also increase consumer interest in upgrading.
Mohan's broader bullish thesis rests on opportunities in agentic AI, faster Services growth, margin benefits from Apple's internally developed silicon, and continued capital returns. The analyst reiterated a Buy rating on Apple with a $370 price forecast, based on 37 times the firm's calendar 2027 earnings estimate of $9.98 per share.
Apple stock rose nearly 1% Thursday as a broad market rally lifted mega-cap technology stocks. The stock is trading above its key moving averages and nears its 52-week high of $344.57.