BofA Reiterates Neutral Rating on Apple, Cites iPhone 16 Shipping Data

BofA Securities analysts reiterated their Neutral rating on Apple (NASDAQ:AAPL) with a price target of $256 on the stock.

The analysis focuses on the shipping times for Apple’s latest iPhone 16 series, which have extended but are shorter on average compared to the same point last year in the pre-order cycle. The iPhone 16 Pro and Pro Max models are experiencing lead times of 14 and 19 days, respectively, compared to 24 and 32 days for the iPhone 15 Pro and Pro Max during last year’s pre-order period. The analysts attribute this improvement to Apple's likely shift in supply allocation toward the Pro models this year, and to fewer supply chain disruptions, such as last year’s issues with the iPhone 15 Pro Max’s tetraprism lens.

Meanwhile, shipping times for the iPhone 16 and iPhone 16 Plus models are slightly lower than last year, currently standing at 10 and 11 days, compared to 12 days for both models in 2023.

The analysts remain optimistic about Apple’s long-term prospects, citing a multi-year iPhone upgrade cycle, improvements in gross margins, and the company’s robust cash flow as positive drivers.