Apple has received two stock price target increases, with both analysts highlighting the tech giant’s personal computer business as a key factor. Wells Fargo’s Aaron Rakers and Deutsche Bank’s Sidney Ho have raised their price targets on Apple shares, while maintaining their ratings. The revised targets come ahead of Apple’s upcoming third-quarter earnings report on August 3.
Rakers has increased his price target from $210 to $225 and maintains an Overweight rating. On the other hand, Ho has raised his price target from $180 to $210 and maintains a Buy rating.
Both analysts acknowledge the significance of personal computers in their assessments. Rakers discusses the overall industry, while Ho focuses specifically on Apple’s Mac.
Rakers states, “We continue to believe that the PC industry has completed its inventory correction—leaving us to focus on a stabilizing demand environment.” He believes that Apple will continue to gain market share as the PC market recovers in the second half of 2023 and the first half of 2024.
According to market researcher International Data Corp, global PC shipments experienced a decline in the second quarter, although sales were better than expected. Ho, however, expects Apple’s third-quarter results and fourth-quarter guidance to match or exceed Wall Street’s expectations.
“Our recent checks and third-party data suggest upside to iPhone, Mac, and Services,” Ho said. He also indicates that third-party shipment data suggests revenue for iPhones and Macs is higher than Deutsche Bank’s initial estimates of 11% and 8% decreases respectively compared to the previous year.
As of midday trading on Monday, Apple’s stock was up 0.7% to $193.26, resulting in a 49% surge this year.