Several Wall Street analysts remain bullish on Apple (AAPL) stock despite ongoing concerns about tariffs, China business, and the artificial intelligence (AI) push. Evercore ISI analyst Amit Daryanani reiterated a buy rating on Apple stock with a price target of $290, citing optimism about the company’s high-margin Services business despite a slowdown in App Store revenue growth in September. Meanwhile, Morgan Stanley analyst Erik Woodring raised his price target for AAPL stock to $298 from $240 and reiterated a Buy rating, noting a “modestly” stronger-than-anticipated start to the iPhone 17 cycle.
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Top Evercore Analyst Remains Bullish on Apple Stock
Daryanani noted that Apple Store revenues grew by 7% year-over-year in September, reflecting a deceleration from the 14% increase observed in August. The 5-star analyst highlighted that, prior to September, App Store revenue had grown by double digits for the last six quarters. He added that year-over-year growth rates across all categories (including entertainment and music) slowed from August, with the gaming category seeing a 2% decline compared to a 6% growth in August.
Daryanani pointed out that gaming remains the largest category within the App Store at 44% and is a “key enabler” of Services reaching double-digit growth. Meanwhile, revenues by region also experienced a slowdown, with China revenue coming in below expectations.
Despite the slowdown last month, Daryanani believes that Apple remains well-positioned to deliver double-digit Services growth in the September quarter, with revenues growing at an average of about 12%.
Morgan Stanley Analyst Sees More Upside in AAPL Stock
Morgan Stanley’s Woodring increased his Fiscal 2026 iPhone revenue estimate by 4% to reflect 3% higher units and 1% higher average selling prices (ASPs). He increased his estimates based on checks that indicate that a “build increase is imminent,” driven by strong demand for iPhone 17 base, Pro, and Pro Max models.
The analyst contends that while the market has already factored in the strength of iPhone demand, there remains a favorable upside to the trailing 12-month estimates, with the early drivers of iPhone 17 strength fueling more excitement about the iPhone 18 cycle.
Woodring highlighted that the key driver of a stronger iPhone 17 cycle is an aged iPhone installed base that needs upgrades. This, along with the first-ever foldable iPhone and six total new iPhone launches next cycle, supports high-single-digit year-over-year iPhone revenue growth extending into FY27, even without making any assumptions related to AI. Consequently, Woodring raised his Fiscal 2026 and Fiscal 2027 earnings per share (EPS) estimates by 2% and 6%, respectively, with his new Fiscal 2027 EPS estimate of $9.30 being higher than the Street’s consensus forecast by 6%.
What Is the Price Target for Apple Stock?
Currently, Wall Street has a Moderate Buy consensus rating on Apple stock based on 19 Buys, 14 Holds, and two Sell recommendations. The average AAPL stock price target of $255.63 indicates that the stock is fully valued at current levels. Apple stock has risen 2.7% year-to-date.
