5 big analyst AI moves: Apple and IBM upgraded, Baidu 'best AI play in China'
Here are the biggest analyst moves in the area of artificial intelligence (AI) for this week.
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Apple Inc (NASDAQ:AAPL) is likely to feel a boost from AI and Vision Pro devices, according to Bank of America analysts. The analysts also sees an end to negative EPS estimate revisions.
As a result, the analysts raised the rating on AAPL stock to Buy from Neutral with the price target raised to $225 per share.
“We upgrade Apple to Buy from Neutral, given: 1) stronger multi-year iPhone upgrade cycle driven by need for the latest hardware to enable Generative AI features to be introduced in 2024/2025 (large part of installed base still on iPhone 11), 2) higher growth in Services as Apple better monetizes its installed base (see our deep dive), 3) silicon roadmap to morph from PC to Servers to Autonomous, driving higher margins…”
“4) capital returns strong (buybacks, dividend) even post approaching net cash neutral, 5) GM stable to higher over time (mix, price, vertical integration), 6) AAPL remains underweighted vs. S&P500 (Fig 13, 14) and anticipation of AI features could induce institutional investors to increase positions, 7) risk around legal issues is manageable, and 8) recent relative underperformance suggests many risks baked into expectations.”
Analysts at Evercore ISI raised the rating on International Business Machines (NYSE:IBM) stock to Outperform.
“We think as Enterprises look to deploy AI tools to enhance productivity – the process will be complicated and messy, furthermore we think data security and not running enterprise data on public LLM models will be a key focus – IBM with their unique set of consulting and software
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