Bank of America has upgraded its recommendation on Apple (AAPL) shares from “neutral” to “buy.” BofA says the stocks current low price “presents opportunity” for investors, as there are multiple possibilities for growth from healthcare and services.
February’s rebound of Apple’s shares in February following the stock market’s pessimism after the first quarter results is seeming to continue, based on an investor note from Bank of America. The drop in share price has made the Bank of America’s Wamsi Mohan optimistic about the company, with the low cost per share making it an attractive purchase.
In addition to Bank of America’s change in status to “buy,” it also has set a new price target of $180.
“AAPL stock is down 26 percent from its peak and up 9 percent year-to-date,” writes Mohan. “Our scenario analysis suggests that shares are discounting a ‘declining hardware’ scenario and the debate hinges on the lead time trajectory.”
Mohan suggests “weakness in hardware is not entirely structural,” with the new price target based on “flat” hardware sales and “somewhat slower than historical growth in Services.”