By Senad Karaahmetovic
Bank of America analysts raised the price target on Apple (NASDAQ:AAPL) stock to $168 per share to reflect higher estimates for 2023 and 2024.
Changes to BofA's model have been made after checks showed that the iPhone and Services trends "are stable to better," further supported by the falling dollar. The analysts expect to see a re-acceleration in Services growth starting from Apple's FQ3.
"Although Macs and iPads have trended worse, the highest margin parts of the portfolio will likely keep gross margins stable," they said in a note.
Still, they reiterated a Neutral rating on Apple stock as they continue to see a balanced risk-reward.
While Apple shares are likely to benefit from positive catalysts, such as new product introduction (AR/VR headset) and stable iPhones, the analysts believe these will be offset "by a potentially weaker consumer spending environment in 2H23."
Apple stock is up 27.5% year-to-date (YTD).