Apple Inc. AAPL recently released a list of its top suppliers for materials, manufacturing and assembly of its products which showed that China remains a key manufacturing base and India is ramping up production as well.
Why It Matters:
BofA Securities released a research note based on the list of Apple's suppliers which named companies that could potentially benefit from an Apple product cycle.
BofA named electronics manufacturers Jabil, Inc. JBL and Flex, Ltd. FLEX as potential beneficiaries and noted Apple accounted for 17% of Jabil's revenue in 2023.
Amphenol Corporation APH provides connectors and antennas for the iPhone, and BofA estimates Apple accounts for single-digit revenue at Amphenol. BofA also noted glass maker Corning Incorporated GLW remained on Apple's 2023 supplier list.
The firm maintained its Buy rating on Apple with a $225 price target highlighting higher growth in Services revenue and continuing capital returns. BofA also expects a strong iPhone upgrade cycle in 2025 driven by the need for the latest hardware in order to enable generative-AI features.
AAPL, JBL, FLEX, APH, GLW Price Action: According to Benzinga Pro, Apple shares are up 3.24% at $174.75, Jabil shares are down 0.66% at $117.49, Flex shares are up 0.16% at $29.02, Amphenol shares are up 0.86% at $121.53 and Corning shares are up 0.85% at $31.60 at the time of publication Monday.
Image: Courtesy of Apple, Inc.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Comments
Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.
