Apple: Upgrading To Buy On New Catalyst And Adjusted Smartphone Expectations

(11min)

Summary

  • We're upgrading Apple to a buy after a long, neutral stance.
  • We're more positive about Apple's ability to outperform with Apple Intelligence, a catalyst for new iPhone releases.
  • We also think smartphone demand bottomed and expect to see smartphone TAM expansion in 2025.
  • The stock has traded in-line with the S&P 500 since our hold-rating in 2H23. We see more upside from current levels in 2025.
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We're upgrading Apple Inc. (NASDAQ:AAPL) to a buy after a long, neutral stance on the stock as we see more upside on two factors. First, we think the market has recognized the muted smartphone demand and intensified

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This article was written by

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Tech Stock Pros is a team of three former technology sector engineers with a long history of investing in the tech sector.

They run Tech Contrarians, an investing group providing institutional-level company research to individual investors. Utilizing a live portfolio with quarterly updates, bi-weekly newsletters, and answering questions daily via chat, Tech Stock Pros aims to demystify investing in the technology sector. Learn more.

Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

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