×

We've got news for you.

Register on BusinessLIVE at no cost to receive newsletters, read exclusive articles & more.
Register now
The Apple logo at the entrance to the Apple store on 5th Avenue in Manhattan, New York, US. File photo: REUTERS/MIKE SEGAR
The Apple logo at the entrance to the Apple store on 5th Avenue in Manhattan, New York, US. File photo: REUTERS/MIKE SEGAR

Apple analysts just keep getting more bullish, with Bank of America (BofA) on Tuesday upgrading the iPhone maker to “buy” on the revenue opportunity from virtual reality products.       

The share price firmed 0.4% in premarket US trading, with BofA analyst Wamsi Mohhan setting a $210 price target that matches JPMorgan Chase as the highest on the Street. Apple must rise about 4% from Monday’s close to hit a historic $3-trillion market valuation.

BofA’s positive view is based on the expectation that Apple will launch an augmented reality/virtual reality headset by early 2023. “We view this technology as a game-changer as it will enable many new applications which will require high performance hardware and higher access speeds,” Wamsi wrote in a note.

The analyst expects Apple’s multiple to rerate higher ahead of an AR/VR product launch — as has been the case with previous major new products — and also sees capital returns remaining strong.

Analysts have been boosting Apple price targets rapidly over the past few weeks. On Monday, JPMorgan raised its price target to $210, citing the potential of the iPhone SE 5G model. CFRA also raised its target on Monday, writing that consensus expectations for Apple “likely appear too conservative”. And last week, Morgan Stanley analyst Katy Huberty cited VR products and autonomous vehicles as the reason for her price target hike.

Apple’s share price surged throughout 2021. It has more than tripled since Covid-19 first sent the world into lockdown early in 2020 and underlined the centrality of technology for work, education and entertainment.

Bloomberg

subscribe

Would you like to comment on this article or view other readers' comments?
Register (it’s quick and free) or sign in now.

Speech Bubbles

Please read our Comment Policy before commenting.