Apple Inc (NASDAQ:AAPL, ETR:APC) is set to release its Vision Pro on February 2 and analysts at Bank of America Corp (NYSE:BAC) are bullish on the headset as a revenue driver.
The firm upgraded the tech giant to a 'Buy' rating and raised its price target to $225 from $208. Shares of Apple improved 3.3% Thursday morning to $188.68.
“Investor focus is shifting to the expected launch of Vision Pro in Feb 2024 and AI enabled iPhones in 2024/2025,” the analysts wrote in a note to clients.
"We expect Apple to introduce AI driven features in iOS18 with monetization through better iPhone hardware and AI enabled third party apps,” the analysts added. “Vision Pro could surpass iPad revs over time as spatial computing takes hold offering differentiated use cases driving services upside.
The firm increased its iPhone unit estimates to 233 million in fiscal 2024, 250 million in 2025 and 250 million in 2026, up from 231 million, 244 million and 230 million, respectively.
BofA expects a “stronger multi-year iPhone upgrade cycle driven by need for the latest hardware to enable generative AI features to be introduced,” the analysts wrote.