Apple Inc. (AAPL) has been reiterated as a "Buy" by BofA Global Research, with a raised price objective of $265, up from $253, driven by robust growth in its Services segment and improved gross margins. The report highlights Apple's earnings resiliency and strong capital returns, with a focus on the potential of Apple Intelligence to drive future iPhone upgrades. The company's broad product portfolio, including Mac and iPad, showed resilience against macroeconomic fluctuations, with both segments achieving double-digit growth year-over-year.
Apple's F1Q25 earnings call revealed record revenues of $124.3 billion, a 4% increase y/y, and EPS of $2.40, slightly above estimates. Services revenue reached an all-time high of $26.3 billion, growing 13.9% y/y, with gross margins hitting 75%. The installed base of Apple devices surpassed 2.35 billion, marking a new record. BofA notes, "Our thesis remains that Apple Intelligence will continue to drive upgrades," underscoring confidence in Apple's innovation and market position.
The current stock price of Apple is $244.20, reflecting a 2.78% increase from the previous close.