BofA Maintains Buy Rating on Apple Inc. (AAPL), Keeps PT

On June 2, BofA analyst Wamsi Mohan maintained a Buy rating on Apple Inc. (NASDAQ:AAPL), retaining the associated price target at $235.00. The analyst based the rating on AAPL’s strong financial performance and continued growth.

He reasoned that although Apple Inc. (NASDAQ:AAPL) experienced a decline in its stock price recently compared to broader market dynamics, its significant net cash position and robust free cash flow make it an attractive investment. Mohan views the company’s brand and ecosystem as key competitive advantages, as they hold the potential to expand into new markets through considerable R&D investments.

An Apple store displaying the latest in consumer electronics, from smartphones to wearables.

He also pointed out that Apple Inc.’s (NASDAQ:AAPL) valuation currently stands at the lower end of its post-2020 range, which points towards room for appreciation. The company can potentially expand into a number of industries according to the analyst, such as AI services, advertising, and health, paving the way for various means of revenue and margin growth.

Apple Inc. (NASDAQ:AAPL) also has strong capital returns through buybacks and dividends, factors that, according to Mohan, contribute to the potential for sustained growth and a resilient earnings outlook.

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Disclosure: None.