Rating
Buy
Price target
$330
Previous
Implied upside
+29%

Evercore ISI analyst Amit Daryanani reiterated an Outperform rating and $330.00 price target on Apple (NASDAQ: AAPL), adding the stock to the firm’s Tactical Outperform list.

“We continue to have a positive stance on shares of AAPL heading into Dec-qtr print on Jan 29th, as our checks suggest that there’s near-term upside to street estimates, driven by strong iPhone demand and a minimal memory cost headwind (through the Mar-qtr).

For Dec-qtr (Q1’FY26), we’re modeling revs/EPS of $140.5B/2.71, ahead of street at $137.4B/2.67.

Our checks, coupled with industry data points, suggest near-term upside to AAPL estimates driven by robust iPhone demand + minimal memory cost headwind.

On iPhone demand, sales have skewed more towards higher-end models, which are positive for ASPs relative to where street estimates are at.

We’re modeling iPhone revenues up +17% y/y for FQ1 relative to street at +11%; recall, AAPL guided FQ1 iPhone revenues up double-digits.

For Services, despite softer App Store data (which we estimate to be ~20% of segment revs) from weaker gaming revs in Asia and tougher y/y comps, we’re still modeling Dec-qtr segment revenues up double-digits (+13% y/y), driven by faster growth in other parts of the segment.

Worth noting here that a strong iPhone product cycle typically reflects stronger warranty sales (AppleCare + Apple One subscriptions) and looking back at the Sept-qtr, Services revenues grew 4% higher than how App Store data performed.

On memory, AAPL is more insulated through the Dec-/Mar-qtrs due to LTAs that secured NAND supply and pricing, and this should flow through to the bottom line fairly well.

We’d note that our Dec-qtr GM estimate is in line with street (at 47.6%), though our Mar-qtr remains ahead at 47.8% (vs. street at 47.3%).

And for H2:FY26, our latest estimates reflect modest GM headwind from increased memory pricing. Net/Net: We’re adding AAPL to out TAP OP list ahead of Dec-qtr earnings.

AAPL remains our TOP PICK for CY26, as we think it’s well positioned to sustain mid-to-high single digit top-line growth and double-digit EPS growth on the backs of a strong product refresh cycle.”

This research note is reproduced verbatim from the issuing firm. Price Target never edits, paraphrases or alters analysts’ words — we only republish them in one place.

Share

Share on