Apple (NASDAQ:AAPL) Share prices are down about 5% for the year so far, and Wedbush analyst Dan Ives views the decline as a buying opportunity.
The analyst recently maintained his Buy rating on the stock and reiterated a short-term price target of $250. This target represents a 35% upside from the current stock price of $183. His optimism reflects sales expectations for Apple’s new Vision Pro headset, which the company describes in press releases as “a revolutionary spatial computer that seamlessly blends digital content with the physical world.”
Analysts expect the Vision Pro to reach 1 million units sold in 2025
Wedbush analysts initially set a high price target last year in hopes of strong sales of the iPhone 15. Sure enough, Apple reported better-than-expected revenue of $119 billion in the quarter. ending in December, driven by the iPhone.
Ives now sees Apple’s Vision Pro headset – the company’s first major computing product since the Apple Watch – as a growth catalyst that could provide an edge to Apple’s long-term profit growth. Its sales forecast is 600,000 units in 2024 with 1 million units sold in 2025.
Bank of America analyst Wamsi Mohan has the same forecast for 2025, and he raised his projection to 4 million units for 2026.
Is Apple stock a buy?
Apple stock is not cheap and trading high forward price/earnings ratio of 28, and the Vision Pro might take a while to win over Apple customers, especially given its steep retail price of $3,499.
However, Apple has a long history of delivering new products that people ultimately can’t live without, but didn’t think they wanted in the first place. It is a very profitable business, with almost $100 billion in annual revenue. free movement of capital, and he got to this point by making calculated bets on what he thinks customers will love. I wouldn’t bet against it in the long term.
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Bank of America is an advertising partner of The Ascent, a Motley Fool company. John Ballard has no position in any of the stocks mentioned. The Motley Fool holds positions and recommends Apple and Bank of America. The Mad Motley has a disclosure policy.
Apple’s Mink Pro Could Send Stock Up 35%, Wall Street Analyst Says was originally published by The Motley Fool
