TD Cowen has raised its price target on Apple shares to $250 from $220 ahead of the company’s earnings release later this week.
TakeAway Points:
- TD Cowen increased Apple’s (AAPL) price target to $250. As of 2024, Apple shares had increased by 13%.
- Highlighting its leadership in CDN and potential in security and cloud solutions, Guggenheim upgraded Akamai Technologies (AKAM) to buy with a $128 target.
- Apple, Microsoft, Micron Technology, Shopify, and Sea Limited were all deemed excellent investments by Bank of America prior to reporting; the latter company’s shares had increased 61% in value this year.
Apple Price Target Increased
This new target implies nearly a 15% upside from Friday’s close. The firm reiterated its buy rating on Apple shares, citing artificial intelligence as a significant driver for the company moving forward.
“We expect AAPL to report in-line results and outlook as NT headwinds could include modest China market share loss to Huawei devices, macro impact on consumer demand and FX.” Analyst Krish Sankar said.
Sankar also highlighted that iPhone sales are expected to remain robust over the long term, with an annual handset replacement demand of roughly 220 million units. He noted that Apple’s forthcoming artificial intelligence suite could be a key catalyst for supporting iPhone replacement demand. Apple shares have added more than 13% in 2024, and the company will report its fiscal third-quarter results on Thursday after the close.
Akamai Technologies Upgrade
Guggenheim has upgraded Akamai Technologies to buy from neutral, setting a price target of $128 on the stock, which implies a 32% upside from Friday’s close. Analyst John DiFucci commented, “We believe the company can leverage its leadership [content delivery network] position to deliver security and cloud solutions that will not only provide incremental value in themselves, but will also increase the value of AKAM’s leading CDN business.”
DiFucci added that CDN technology is foundational to both security and cloud computing, which should improve characteristics such as gross retention and price stability. Akamai shares have lost more than 18% this year but rose 2% in premarket trading on Monday.
Bank of America Tech Stock Picks
Bank of America has identified several technology stocks as strong buys ahead of their quarterly results this week. The investment bank highlighted Apple, Microsoft, Micron Technology, Shopify, and Sea Limited as having significant room to run. Analyst Wamsi Mohan raised Apple’s price target to $256 from $230, citing a “refreshed iPhone cycle” and strong brand loyalty. Mohan noted, “14% of respondents in the U.S. reported that they are planning on buying the Apple Vision Pro.” Shares of Apple are up 13.2% this year.
Shopify was also upgraded to buy from neutral by analyst Brad Sills, who pointed to a “more balanced growth & margin profile” and the company’s transformation under a new chief financial officer. Sills stated, “Revenue growth and disciplined spending point to healthy margin expansion going forward.” Shopify shares are down 23% in the U.S. this year.
Sea Limited, a Singapore-based tech internet company, has seen its shares rise by 61% this year. Analyst Sachin Salgaonkar urged clients to remain calm as trends show improvement in the company’s gaming and Shopee divisions. Salgaonkar wrote, “In our view, it is well placed to ride e-com boom in Southeast Asia given its increasingly dominant online marketplace (Shopee), while its expansion into Brazil offers further long-term growth potential.” Sea is expected to report quarterly earnings in August.
