Wamsi Mohan, an analyst at BofA Global Research, is becoming more optimistic about Apple stock, citing stronger demand for iPhones.
“Our checks suggest iPhones and Services are stable to better [with revenue] additionally aided by incremental FX [currency] tailwinds,” he wrote. “Although Macs and iPads have trended worse, the highest [profit] margin parts of the portfolio will likely keep gross margins stable.
The analyst finds the risk-reward for Apple stock as “balanced.” He believes any benefit from iPhone sales and potential new product introductions like an augmented/virtual-reality headset could be offset by weaker consumer spending later this year.
Mohan also predicts the growth rate for Apple’s services revenue will start to improve in the company’s fiscal third quarter ending in June.
MacDailyNews Take: Mohan reiterated his rather anemic “Neutral” rating and raised his Apple stock target price from $158 to $168 – a mere $5 over Apple’s current price.
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