By Silvano Grimaldi, CEO of the independent asset management firm Grimaldi & Partners AG.
Monthly Review
International equity markets ended January 2024 with gains.
Driving Factors
- Generally resilient economic data
- Expectations of rapid interest-rate cuts in the United States
- Declining bond yields, which provided positive momentum for equity markets
- Positive quarterly results and optimistic earnings outlooks from several major companies, particularly within the technology sector
- Continued enthusiasm surrounding artificial intelligence
Stock in Focus
Apple Rises Following Its First Upgrade of the Year on Expectations of AI Features
BofA Global Research upgraded the iPhone manufacturer from “Neutral” to “Buy” and raised its price target from USD 208 to USD 225.
The new price target represented an upside potential of approximately 23% compared with the share’s previous closing price.
BofA expects a strong multi-year iPhone upgrade cycle, driven by demand for the latest hardware required to support generative artificial-intelligence features.
Weakness in China is expected to be offset by stronger performance in other regions.
Outlook – February 2024
Key Market Factors
The decline in long-term US interest rates, resilient economic data and generally positive corporate results for the final quarter of 2023 supported the equity-market rally in January.
Looking ahead, the most important factors remain:
- Resilient economic data
- The resulting corporate earnings expectations
- Potential central-bank interest-rate cuts
Performance Expectations
For February 2024, we expect surprisingly strong share-price gains among selected leading companies and a continuation of the positive trend across international equity markets.
Stock Recommendation: Apple
This publication is provided for informational purposes only and does not constitute investment advice or a recommendation to buy or sell any financial instrument. Past performance is not indicative of future results.
