Apple (NASDAQ: AAPL) stock rose during intraday trading after Loop Capital upgraded it to a Buy with a $300 price target, the highest on Wall Street.
Loop Capital has issued a bullish assessment on Apple, predicting the tech giant to emerge as the dominant platform for next-generation artificial intelligence (AI), akin to its past successes with the iPhone and iPod.
The firm’s Supply Chain Analyst expects Apple to solidify its position as the go-to platform for AI, echoing its past dominance in social media 15 years ago and digital content consumption 20 years ago.
Loop Capital explained,
“Our $300 PT is 33x our $9.00 CY2026 EPS (what the stock will be valuing in 12 months). 33x P/E is the higher-end of AAPL’s 20x – 35x post-Covid P/E range.”
This upgrade represents a significant shift from May 2023, when Loop Capital downgraded Apple to Hold due to anticipated reductions in iPhone production.
The analysts explained,
“This work proved prescient, as iPhone pressure manifested in Sep Q ’23, and that conversation lingered into Feb ’24.”
The recent upgrade is driven by the latest findings from the firm’s analysts, indicating a notable increase in iPhone 16 production fueled by heightened interest in AI.
Loop Capital stated,
“AAPL has an opportunity in the next few years to solidify itself as consumer’s Gen AI “base camp” of choice, just as it did for social media 15 years ago (with iPhone) and digital content consumption 20 years ago (with iPod).”
The firm forecasts that this new trend could lead to substantial stock gains, much like past technological advancements have done.
Overall, Loop Capital’s optimistic outlook and higher price target reflect strong confidence in Apple’s strategic positioning and growth prospects in the evolving AI landscape.
Apple (NASDAQ: AAPL) Stock Reaction
AAPL stock jumped 1.67% on Monday, closing at $234.40, marking a 2.89% increase for the week. The trading volume was 62,631,252 shares, lower than the average daily volume of 68.36 million.
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