In a new note to investors, J.P. Morgan maintained its Buy rating on Apple while raising its price target for the company’s stock. Here are the details.
J.P. Morgan sees limited impact from Apple’s price hikes
Over the past few days, Apple’s stock has recovered from a roughly 6% dip following its announcement of price hikes for several products due to the market-wide memory shortage.
Since the dip in late June, Apple has gained nearly 15%, and it is currently trading at $311.44, near its all-time high of $317.40.
According to J.P. Morgan (via AppleInsider), the recent price increases are unlikely to meaningfully affect Apple’s long-term growth, prompting the firm to raise its price target to $345, up from the $325 target it set in January.
From AppleInsider:
In its reasoning, JP Morgan first says that the historical data for sales volumes covering iPhone, Mac, and iPad show a “limited relationship” to pricing across multiple years. Essentially, consumers are going to buy Apple products anyway, and pricing doesn’t seem to matter too much.
The report notes that Macs, which saw the bulk of the price hikes, could still benefit from stronger upgrade demand tied to AI features, helping offset the impact of higher prices.
As for the iPhone, J.P. Morgan reportedly noted that buyers of higher-end models tend to be less sensitive to price increases. It is worth noting that Apple has not raised iPhone prices so far, though many expect that to change in September with the introduction of the next-generation lineup.
Worth checking out on Amazon
FTC: We use income earning auto affiliate links. More.