Apple Inc.’s highly anticipated ‘Glowtime’ event on September 9th has the tech world abuzz, but analysts are taking a more measured approach. With the unveiling of the iPhone 16, updated Apple Watches, and AirPods on the horizon, investors are eager to see if this event will propel Apple’s stock upward or leave it stagnant.
Goldman Sachs analyst Michael Ng remains optimistic about Apple’s long-term prospects, reiterating a Buy rating and a 12-month price target of $276. Ng believes the new iPhone 16, featuring innovative product advancements, will drive upgrades and installed base growth, ultimately boosting iPhone revenue growth to 9% in both fiscal years 2025 and 2026. This optimistic outlook is driven by anticipated AI features and new hardware form factors for the iPhone 16.
However, Ng acknowledges that Apple’s stock typically underperforms the broader market on the day of iPhone announcements. While he expects Monday’s event to have a minimal impact on the stock price, he highlights potential upside surprises, including a price increase for iPhones, the earlier-than-expected release of AI features and apps, and favorable carrier promotions.
On the other hand, Piper Sandler analyst Matt Farrell adopts a more cautious stance, maintaining a Neutral rating with a price target of $225. Farrell expresses concern that the current stock valuation, at approximately 30 times its estimated 2025 earnings per share, already incorporates much of the near-term excitement surrounding the event. He believes the event could be significant if ‘Apple Intelligence’ takes center stage, offering a positive boost to the ‘super cycle’ thesis. However, Farrell remains wary of any significant price increases for the iPhone 16, considering that consumer spending shows signs of weakening.
As Apple prepares for its ‘Glowtime’ event, analysts agree that while the iPhone 16 and Apple Intelligence hold the potential to impress, there is a sense of caution in the air. Ng’s optimism rests on the possibility of surprise announcements, while Farrell remains skeptical, highlighting potential headwinds such as consumer spending and the absence of revolutionary changes. Investors will be closely watching to see if Apple can truly shine or if this event will result in a more subdued outcome.
