DA Davidson Sticks to Neutral on Apple Amid Ternus Era
DA Davidson has reconfirmed its Neutral rating on Apple Inc., with a price target of $270.00, below the current stock price of $324.32. The firm believes that Apple's position in AI has improved and expects innovation to drive growth in the coming years. One key factor will be the success of the foldable iPhone Ultra and the impact of price increases across products and services.
Without these factors, DA Davidson would have expected revenue declines next year as Apple compares against the biggest iPhone upgrade cycle in five years. The firm notes that the iPhone 18 may offer minimal incremental improvement, which aligns with a recent InvestingPro Tip noting that 13 analysts have revised their earnings downwards for the upcoming period.
Apple investors and consumers will be looking for further innovation down the line, according to DA Davidson, with potential products including a glass iPhone, AirPods with camera, and possible glasses. However, concerns exist regarding the impact of Meta Platforms Inc.'s recent privacy concerns on the glasses category.