Apple (AAPL) Stock to Break $370 with Carrier Subsidies... Wall Street Maintains 'Buy' Rating

▲ Apple (AAPL), iPhone, MacBook, AirPods, Apple Watch / AI generated image

U.S. mobile carriers have set subsidies of up to $1,200 for the latest iPhone models. This has led to a Wall Street diagnosis that Apple's (Apple, AAPL) device replacement supercycle will fully commence. It is evaluated that carrier promotions are largely absorbing consumer price resistance caused by the high-price policy.

According to Benzinga on September 18 (local time), Bank of America (BAC) analyst Wamsi Mohan reaffirmed a 'Buy' rating for Apple and maintained a price target of $370. Mohan cited aggressive expansion of carrier subsidies, on-device artificial intelligence (AI) technology competitiveness, and strong shareholder return policies such as share buybacks as key drivers for the upside.

Major U.S. mobile carriers have significantly increased device trade-in benefits in line with Apple's new product launches. The maximum trade-in credit for the iPhone 18 Pro Max surged to $1,200. This surpasses the $1,100 for its predecessor, the iPhone 17 Pro Max, and $1,000 for the iPhone 16 Pro Max. Verizon Communications (VZ) and AT&T (T) are offering the highest level of subsidies when trading in iPhone 14 or later models, while T-Mobile US (TMUS) offers them for iPhone 15 Pro or later models.

Mohan analyzed that generative AI features requiring high-performance hardware will strongly support a multi-year iPhone upgrade cycle. Margin improvement due to the application of Apple's self-developed silicon chips and the rapid growth of the services segment were also cited as factors driving performance. The price target of $370 was calculated by applying a price-to-earnings ratio (PER) of 37 times to the estimated earnings per share (EPS) of $9.98 in 2027.

Technical indicators also support a strong long-term uptrend. Apple's stock price is consistently above its 20-day, 50-day, 100-day, and 200-day simple moving averages, maintaining a solid golden cross pattern. The Moving Average Convergence Divergence (MACD) also confirmed buying dominance by maintaining a positive histogram above the signal line. The key resistance level is around the 52-week high of $344.57, and the support level is formed at around $300.50.

With the advancement of AI features and carrier support, Apple's hardware replacement cycle has entered a new phase. Robust revenue growth in the services segment and the expansion of the agentic AI ecosystem are expected to further accelerate performance improvements.

[Article Key Summary]

-Bank of America maintained Apple's (AAPL) price target at $370, boosted by U.S. carriers' expanded subsidies of $1,200.

-Carrier promotions are offsetting the burden of device price increases and triggering a multi-year upgrade cycle based on generative AI.

-Apple's stock is maintaining strong buying momentum above key moving averages and attempting to break its 52-week high.

*Disclaimer: This article is for investment reference only, and we are not responsible for any investment losses based on it. The content should be interpreted for informational purposes only.*