TD Cowen Reiterates ‘Buy’ Rating for Apple (AAPL) with a $275 Price Target

On June 3, analysts at TD Cowen reaffirmed a ‘Buy’ rating and a $275 price target on Apple Inc. (NASDAQ:AAPL) stock. The analysts reiterated the bullish stance on expectations the company will capitalize on generative artificial intelligence advancements in the smartphone industry.

TD Cowen analysts expect generative AI to transform smartphones as large language models have the potential to evolve into operating systems. Consequently, they expect Apple to be one of the beneficiaries, given its significant market position in the industry, backed by a robust gross profit margin of 46.6%.

Analysts believe that if Apple improves AI features, works better with developers, uses stronger AI models on devices, and invests more in cloud technology, its stock price could reach $275. They expect these changes to help Apple’s earnings grow, possibly reaching $10 per share by 2028, with a 10% yearly growth from 2024.

On the other hand, TD Cowen analysts have warned that Apple’s failure to execute AI strategies could result in significant multiple compression. Consequently, the stock stands to fall to about $160 a share.

Apple is a technology company that designs, manufactures, and markets consumer electronics, computer software, and services. It is known for products like the iPhone, iPad, Mac, Apple Watch, and Apple TV, along with related software and services like macOS, iTunes, and the App Store.

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