Apple Stock Boosted by Robust iPhone 17 Demand; BofA Reiterates Buy Rating with a PT of $270

BofA Securities has restated its Buy recommendation for Apple, maintaining a price target of $270.00, due to the extended shipping times for Apple's iPhone 17 series compared to its predecessors from the previous year.

The tracking data from BofA has revealed that the base model of iPhone 17 shows a shipping time of 18 days as of Monday, in stark contrast to the 10-day period observed for the iPhone 16 at the same stage last year. This surge in demand underscores Apple's continued dominance in the Technology Hardware sector, reflected in its impressive market capitalization of $3.64 trillion and a 6% revenue growth over the past year.

The most extended shipping times for the iPhone 17 are reported in China, where demand is likely fueled by a 15% government subsidy for electronics, applicable to the base iPhone 17, alongside the pending regulatory approval for the iPhone Air, which currently isn't available in China.

Shipping lead times for the higher-end iPhone 17 Pro and Pro Max models slightly differ, with global averages holding at approximately 15 days for the Pro model compared to last year's 14 days, and 21 days for the Pro Max, mirroring last year's timeframe.

In the United States, BofA observes greater availability of Pro models on carrier websites, showing lead times of one week, contrasting with Apple's website's 2-3 weeks, which might be attributed to differences in inventory distribution. Analysis from InvestingPro indicates that Apple's stock is currently trading above its Fair Value, with a P/E ratio of 37.36. Subscribers can delve into 15 additional ProTips and detailed Pro Research Report, offering enhanced insights into Apple's valuation and growth outlook.