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Investment banks

Apple's iPhone 16 Event Could Boost Stock Price, Says Goldman Sachs

Strategic Insights

— 2 min read

Goldman Sachs, a prominent investment bank, has increased its Apple price target to $276, predicting a potential upside of 25% for the stock. This projection is based on the bank's expectation that Apple's investments in hardware and AI will drive revenue growth in 2025 and 2026. The upcoming iPhone 16 event could be a catalyst for this growth, with four potential "upside surprises" that could drive the stock price closer to Goldman's target. These surprises include a price increase for the new iPhones, an earlier-than-expected launch date for Apple Intelligence features and apps, new iPad announcements, and better-than-expected promotions from telecom companies.

Key Takeaways:

  • Goldman Sachs increased Apple's price target to $276, representing a potential upside of 25% from Wednesday's close.
  • Apple's investments in hardware and AI are expected to drive revenue growth of 9% in both 2025 and 2026.
  • Four "upside surprises" could drive the stock price closer to Goldman's target, including a price increase for the new iPhones, an earlier launch date for Apple Intelligence features and apps, new iPad announcements, and better promotions from telecom companies.
  • The expected price increase for the iPhone 16 models would provide Apple with a direct revenue boost, considering its continuous innovation in hardware features over the years.
  • The company can increase the price of its phones by increasing the storage for the base model from 128 GB to 256 GB.
  • Goldman Sachs analyst Michael Ng expects Apple's next-generation iPhones to be a hit with consumers as it rolls out AI features.
  • Attractive subsidy programs from telecom carriers like AT&T, Verizon, and T-Mobile could fuel Apple's iPhone revenue growth.
  • Apple is expected to announce a refresh of its Apple Watch lineup and the fourth-generation refresh of its popular wireless headphones, AirPods.

Statistics:

  • Goldman Sachs increased Apple's price target to $276, representing a potential upside of 25% from Wednesday's close.
  • Apple's revenue growth is expected to accelerate to 9% in both 2025 and 2026.
  • The average underperformance of Apple's stock on its big iPhone announcement days over the past five years is 0.70% against the S&P 500.
  • The potential price increase for the iPhone 16 models could provide Apple with a direct revenue boost.
  • The price range for the new iPhones is expected to remain under $1,500.

Sources:

  • Markets Business Insider: [https://markets.businessinsider.com/stocks/AAPL-stock](https://markets.businessinsider.com/stocks/AAPL-stock)
  • Goldman Sachs: [https://markets.businessinsider.com/stocks/gs-stock](https://markets.businessinsider.com/stocks/gs-stock)
  • Business Insider: [https://www.businessinsider.com/guides/tech/iphone-16](https://www.businessinsider.com/guides/tech/iphone-16)
  • Markets Business Insider: [https://markets.businessinsider.com/index/s&p_500](https://markets.businessinsider.com/index/s&p_500)
  • Business Insider: [https://www.businessinsider.com/apple-stock-price-prediction-iphone-16-event-next-week-surprise-2024-9](https://www.businessinsider.com/apple-stock-price-prediction-iphone-16-event-next-week-surprise-2024-9)

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