DA Davidson upgraded shares of Apple (NASDAQ:AAPL) to Buy from Neutral, raising the price target to $230 in a note Tuesday following the company's WWDC event on Monday.
The firm cited the AI capabilities unveiled at the event as leading to an iPhone upgrade cycle and resulting in their re-rating of the technology giant's stock.
"We believe yesterday's presentation rhymes with one of Apple's previous milestone moments — the transition of digital music from a standalone app with questionable regulatory standing (i.e. Napster) to an experience integrated into existing consumer applications (i.e. iTunes)," said analysts at DA Davidson.
They added: "We believe the integration of summarization, enhanced search, multi-modality, text generation, and enhanced photo editing into the exiting ecosystem will drive much broader adoption of AI than we have seen to date."
The investment firm also highlighted that Apple is the first to introduce a "meaningful agent capability that will allow Siri (and beyond) to execute
tasks on behalf of the user."
Furthermore, analysts see Apple as uniquely positioned to offer these capabilities and believe it may be the only one capable of doing so any time soon.