BofA upgraded Apple to Buy from Neutral with a price target of $225, up from $208. The analyst sees a stronger multi-year iPhone upgrade cycle driven by the need for the latest hardware to enable generative artificial intelligence features to be introduced in 2024 and 2025. The firm also expects higher growth in Apple’s Services as the company better monetizes its installed base. Apple’s capital returns are strong and the stock remains under-weighted versus the S&P 500 Index, adds BofA, which believes AI features could induce institutional investors to increase positions. The firm calls the end of Apple’s negative earnings revisions.