BofA Turns Bullish On Apple - Read Why

Analysts bumped up price targets on Apple Inc AAPL over AR/VR, iPhone.

• BofA analyst Wamsi Mohan upgraded to Buy from Neutral with a price target of $210, up from $160, implying a 19.5% upside. 
• The analyst expects Apple to introduce an augmented reality/virtual reality headset, either by the end of 2022 or early 2023. 
• This technology is a "game-changer as it will enable many new applications which will require high-performance hardware and higher access speeds," Mohan notes. 
• The analyst also expects a more robust iPhone upgrade cycle in fiscal 2023 driven by the need for higher connectivity where "AR becomes the killer app for 5G." 
• Mohan models higher growth in Services revenue as he expects Apple to charge more for more immersive AR/VR-enabled apps.
• Evercore ISI analyst Amit Daryanani raised the PT to $200 from $180 (13.8% upside) and kept an Outperform. 
• Daryanani sees room for sustained upside through FY22 as Apple benefits from multiple tailwinds, including sustained iPhone growth, monetization of the installed base across services and wearables, and new product launches. 
• The "bull case narrative" remains that Apple's EPS approaches $6.50, and the stock works towards $225 per share, added Daryanani.
• Related Content: Apple Gets New Street-High Price Target: 'Top Pick Into 2022'
• Price Action: AAPL shares traded higher by 0.85% at $177.24 in the premarket session on the last check Tuesday.