Apple gets a big price target hike, and Wells Fargo plants a big dealmaking flag
Apple is getting a raise and Wells Fargo is looking to expand. The news includes updates on two portfolio stocks. Apple News: Citi raises Apple price target to $330 from $315; This represents an increase of approximately 19% from Tuesday’s close. Company analysts, who maintain their buy rating on the shares, expect iPhone sales to increase as many customers upgrade with the same devices after years. They also cited a recent IDC report predicting a record year for Apple’s iPhone shipments, citing the “phenomenal success” of the iPhone 17 series. Analysts at IDC raised their iPhone 2025 shipment growth forecast to 6.1% year-over-year; significantly higher than the previous estimate of 3.9%. Apple also has promising AI developments on the horizon, Citi said, citing reports that the iPhone maker is nearing a deal to pay Alphabet’s Google for AI technology that will power the upcoming personalized Siri. “We believe this partnership will allow Apple to deliver a more powerful Siri as promised and will give the company time to continue developing its own model,” analysts said. AAPL YTD mountain Apple’s (AAPL) year-to-date performance Club’s take: Apple is trading just 4% below its record high on Tuesday, but there’s still room for improvement. In fact, we raised Apple’s price target from $240 to $300 after October earnings; This is partly due to promising signs for the iPhone 17. Jim Cramer has been pushing the table on Apple’s latest flagship device since its launch in September, touting the iPhone 17 series as a significant value considering trade-in values and carrier subsidies. “We were saying the iPhone 17 was incredible,” Jim previously said. “As long as Apple makes the best products, people will buy them,” he added. Wall Street analysts at JPMorgan and Bank of America said delivery times, a key indicator of demand, were tracked better for iPhone 17 models than for iPhone 16 models. All of this has contributed to the stock’s gains over the past few months, which has pushed Apple into the $4 trillion market cap club. But we still need more clarity on Apple’s AI plans, as the Apple Intelligence rollout is gradual and delayed. Jim said Apple is uniquely positioned to win in the AI space. The company’s massive installed base makes it a strong AI partner for those looking to expand its services to a wider audience. The club continues its long-held “own, don’t trade” thesis on Apple shares. Wells Fargo News: Wells Fargo CEO Charlie Scharf plans to make the bank a top five player in Wall Street deals. At an industry conference on Tuesday, Scharf outlined the firm’s goal of expanding its corporate and investment banking (CIB) division to better compete with larger, more established firms like Goldman Sachs and JPMorgan. According to Scharf, Wells has a competitive advantage because of its excellent relationships in other business lines, such as cash management. Scharf said it is easier to attract clients who have worked with the firm to the investment banking division. Additionally, Wells poached top bankers from rivals such as Barclays, Deutsche Bank, Piper Sandler and others to bolster its investment banking efforts. “We found that we were a very attractive place where bankers wanted to come and work because of everything we offered,” Scharf said, referring to Wells Fargo’s massive balance sheet. Although Wells Fargo has long been viewed as a main street lender, management in recent years has focused on expanding its investment banking business to further diversify its profitability. By some measures, the bank is making progress. Wells Fargo currently ranks No. 8 in global investment banking revenue share in 2025, according to research firm Dealogic. This figure was ranked 9th this time last year. Wells co-advised Union Pacific on its $72 billion cash-and-stock deal for Norfolk Southern, one of the largest M&A transactions of the year, and Netflix’s Warner Bros. deal. He’s helping arrange a $59 billion bridge loan for its planned acquisition of Discovery. WFC’L YTD mountain Wells Fargo (WFC) performance year-to-date Club’s take: It’s no surprise to us that Scharf wants to capture more business in Wall Street deals. Wells Fargo has been making moves for years to strengthen its investment banking franchise with a series of top-level hires. “I don’t think people realize that Scharf is the best recruiter of bankers,” Jim said Tuesday on “Squawk on the Street.” That’s because investment banking is an excellent business to expand into, as it further diversifies Wells’ revenue and reduces the firm’s reliance on interest-based income, which is sensitive to Federal Reserve monetary policy changes. Wells Fargo may be more aggressive in investing in its deal-making business going forward, as regulators lift a $1.95 trillion asset cap put in place in 2018 following the fake customer accounts scandal. This dismissal allows the bank to regrow its balance sheet rather than focusing all its efforts on correcting past regulatory errors that predated Scharf’s tenure. “I think this is Wells Fargo wanting to compete in real life,” Jim said. (Jim Cramer’s Charitable Trust is long AAPL, WFC, GS. 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