Bernstein raised the firm’s price target on Apple to $260 from $240 and keeps an Outperform rating on the shares as part of a 2025 outlook for the IT hardware sector. The firm sees IT hardware as a “structurally challenged sector,” and views names in its coverage universe largely as trading stocks rather than long term core holdings. Bernstein expects a better IT spending backdrop in 2025 and says many companies have stronger portfolios than history, but notes stock valuations are at the higher end, artificial intelligence profitability remains challenging, and it does not see huge upside from a PC refresh cycle in 2025. The firm’s top picks entering 2025 remain Apple (AAPL) and Dell (DELL). Bernstein adjusted price targets for Apple, IBM (IBM) and HP Inc. (HPQ) to reflect market appreciation since its last set of targets. Apple is increasingly a platform business, which has made it a “quality compounder,” with mid-single digit revenue growth, improving margins, disciplined capital returns, and double-digit earnings growth, contends the firm. That said, the stock’s valuation is “somewhat full,” adds Bernstein.