Wall Street analysts forecast Apple's stock to either surge or plummet?
Apple Inc. (AAPL) Faces Mixed Outlook Amidst Modest Growth and External Risks
Shares of Apple Inc. have experienced a 1.8% decline over the past year, with the company's stock currently down roughly 15% year-to-date. Despite this underperformance, analysts generally maintain a Moderate Buy consensus on Apple, with price targets mostly ranging between $230 and $275.
TD Cowen’s Krish Sankar reaffirmed a Buy rating with a $275 price target, expecting Apple to report in-line Q3 FY25 revenue with 4% year-over-year growth. However, concerns about weak AI offerings and tariff sensitivities have contributed to negative sentiment. Mohan from Bank of America reiterated a Buy rating with a price target of $235, anticipating a slight revenue beat in Q3 FY25 and optimism around upcoming product cycles.
JPMorgan Chase lowered its price target from $240 to $230, citing weaker demand expectations for the iPhone 17 and ongoing macroeconomic headwinds. Analysts anticipate modest revenue growth in Q3 FY25, with iPhone sales showing 2.2%–3.3% increases, services growing robustly by 10.7%–11.3%, and some margin pressures from tariffs estimated to cost $900 million impacting gross margins.
Apple faces challenges including tariff-related costs, supply chain shifts to India and Vietnam, and relatively limited AI innovation, which contribute to restrained investor sentiment. For the current fiscal year, ending in September, analysts expect AAPL's EPS to grow 5.3% to $7.11 on a diluted basis. The company has a strong earnings surprise history, beating the consensus estimate in each of the last four quarters.
The consensus among 37 analysts covering AAPL stock is a "Moderate Buy." JPM's analyst, Samik Chatterjee, maintains an "Overweight" rating but sees reduced volume for the iPhone 17, forecasting 85 million units in 2025, down 9% from the iPhone 16. JPMorgan Chase & Co. (JPM) lowered its price target for Apple from $240 to $230 on July 26.
Apple Inc.'s software ecosystem includes iOS, macOS, watchOS, and services like the App Store, Apple Music, iCloud, and Apple TV+. Shares of AAPL surged marginally on Jul. 25 after the company released the beta version of iOS 26. The mean price target of $231.46 represents an 8.1% premium to AAPL's current price levels, suggesting about 7.1% upside from current levels, even as the stock is down roughly 15% year-to-date.
The Street-high price target of $300 suggests an ambitious upside potential of 40.2% for AAPL. However, it's important to note that this target is not widely held among analysts. Apple Inc. (AAPL) has a market cap of $3.2 trillion.
In comparison, the Technology Select Sector SPDR Fund (XLK)—which includes Apple as a major holding—has delivered a 23.76% total return over the past year, outperforming Apple’s stock. Despite this, Apple Inc.'s stock remains a significant player in the tech sector, with a strong ecosystem and a diverse product line that includes the iPhone, iPad, Mac computers, Apple Watch, and AirPods.
Apple Inc. is headquartered in Cupertino, California. All information and data in this article are solely for informational purposes. For more information, please view the article's Disclosure Policy here. Kritika Sarmah did not have positions in any of the securities mentioned in this article at the time of publication.
- As Apple Inc. attempts to navigate external risks and modest growth, some analysts are considering potential investments in the technology giant, with price targets ranging from $230 to $300.
- Despite concerns about weakness in Apple's AI offerings and tariff sensitivities, there is ongoing interest in finance and investing in Apple's stock, due to the company's strong earnings performance and diverse technological product line.
