BNP Paribas has adjusted its target for Apple shares to $300, reflecting a 15.3% increase from the previous target of $260. The upgrade from 'neutral' to 'outperform' is attributed to Apple's ability to navigate the ongoing memory shortages affecting the smartphone market, which are impacting lower-end manufacturers more severely.
The firm's analyst, David O’Connor, noted that Apple's extensive supply chain and market size position it well to capitalize on these challenges, potentially increasing its market share in the premium segment. While Apple is also facing memory-related issues, the company has more strategies to mitigate costs and enhance revenue compared to its competitors.
Recently, during an earnings call, Apple executives reported that the company ended the last quarter with reduced iPhone inventory due to unexpectedly high demand, indicating a “supply chase” to meet customer needs. Despite the current challenges, Apple's stock rose by 2.59% to close at $270.23, demonstrating resilience amid broader market fluctuations.