Analysts say iPhone Air is undervalued

Market research firm Melius Research analyst Ben Reitzes stated that after the iPhone launch event, Apple has officially "emerged from its predicament" and is prepared for higher revenue. He reiterated his buy rating on Apple and raised the stock's target price from $260 to $290, the highest among analysts surveyed by FactSet. He specifically noted that the iPhone Air could drive a larger-than-expected upgrade cycle, particularly in the Chinese market. Reitzes believes that the design of the iPhone Air will be more appealing in China. Overall, analysts agree that the iPhone Air could stimulate a significant number of upgrades, boosting Apple's sales during the critical holiday shopping season. Morgan Stanley analysts mentioned in a report: "The appearance and features of the iPhone Air have left us more impressed than expected, and we can see this device helping to increase the iPhone upgrade rate over the next 12 months." PP Foresight analyst Paolo Pescatore also stated: "I think it's a good thing to see Apple launch a new product in this era of highly similar products. This somewhat revitalizes the entire iPhone market."