Apple (AAPL) BofA Stays Bullish as Price Increases Could Offset Higher Memory Costs

Recently, CEO Tim Cook confirmed that Apple Inc. is raising prices to offset rising representation costs. In response, connected June 18, BofA Securities expert Wamsi Mohan reiterated a Buy standing connected the banal with a $380.00 terms target. The steadfast believes that Apple whitethorn beryllium capable to support its net this mode adjacent arsenic representation costs rise.

The steadfast wrote successful its capitalist enactment however a terms rise was already anticipated, reflecting astir $100 terms summation successful its anterior estimates. However, CEO Cook confirming the outgo unit and owed to the continued rise successful representation costs, the steadfast believes Apple whitethorn further rise pricing by an further $100 connected the Pro and Pro-Max models.

The basal iPhone exemplary is expected to stay unchanged. The steadfast believes that the thought is that buyers' of premium Apple products whitethorn beryllium little delicate to terms changes.

Giuseppe Costantino/Shutterstock.com

Apple whitethorn besides apt rise prices for iPads and Macs, the steadfast noted.

We deliberation determination could beryllium an further 100bps of gross borderline headwinds successful products but expect services margins to stay unchangeable with immoderate imaginable upside to beryllium a imaginable offset. We besides expect Apple to offset immoderate of the constituent terms increases by further offsets successful different areas of the measure of materials. We besides spot immoderate imaginable offsets from recycled/recovered materials, lowering overhead and different proviso concatenation efficiencies.

Apple is simply a exertion institution known for its user electronics, software, and services.

While we admit the imaginable of AAPL arsenic an investment, we judge definite AI stocks connection greater upside imaginable and transportation little downside risk. If you're looking for an highly undervalued AI banal that besides stands to payment importantly from Trump-era tariffs and the onshoring trend, spot our escaped study connected the best short-term AI stock.

READ NEXT: 33 Stocks That Should Double successful 3 Years and Cathie Wood 2026 Portfolio: 10 Best Stocks to Buy. 

Disclosure: None. Follow Insider Monkey connected Google News.