How Wall Street viewed Apple's foldable iPhone and what the Duo means for the stock
The Duo's price suggests Apple is going for adoption rather than short-term profit maximization, analysts say.
Melius Research has maintained its positive outlook on Apple Inc. (NASDAQ: AAPL) with a buy rating and a $370 price target following the debut of the iPhone Duo. The target suggests a potential 17% increase from the current stock price of $315.34. However, InvestingPro data indicates the stock may be slightly overvalued relative to its fair value.
The research firm attended the product launch event in Cupertino with John Ternus, the newly appointed CEO, and Apple's management team. The base model iPhone Duo is priced at $1,999, while the Pro and Pro Max models saw a $100 price increase. The new iPhone Duo is characterized by a slim design, with each side thinner than the iPhone Air, a large display, and a camera system enabling users to view themselves while being photographed.
Apple has updated the Apple Watch with note-taking capabilities and introduced new AirPods at competitive pricing. Melius predicts Apple could sell 15 million Duo units in fiscal year 2027, should supply meet demand, with possible mid-teens production runs. The higher average selling price could contribute to a 20% growth in iPhone revenue over the next two years, contrasting with the current consensus estimate of 9% growth for fiscal year 2027.
The firm noted that Apple has already experienced 14% revenue growth in the past year. Investors can explore more in-depth perspectives on Apple's growth prospects and valuation through the comprehensive Pro Research Report and additional ProTips available on InvestingPro for this $4.6 trillion technology company.
Written by urgent.news from Investing.com's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
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