Rating
Buy
Price target
$330
Previous
$320
Implied upside
+28%

Goldman Sachs analyst Michael Ng raised the price target on Apple (NASDAQ: AAPL) to $330.00 (from $320.00) while maintaining a Buy rating.

“AAPL’s F1Q26 EPS of $2.84 beat GS/consensus (FactSet) of $2.66/$2.67 with iPhone revenue of $85.3 bn (+23% yoy v.

GSe of +13% yoy) driving the majority of the beat; Services revenue of $30.0 bn (+14% yoy) was in-line.

F2Q26E revenue guidance of 13-16% yoy growth (including Services +14% yoy) beat (consensus: +10% yoy) with upside in Products revenue.

First, iPhone global demand was better-than-expected, particularly in China, where AAPL revenue increased +38% yoy.

Although the F2Q26E guidance beat, revenue would have potentially been even better, if not for 3nm advanced node constraints for SOC (systems on a chip).

Given these SOC constraints, we think there is an even greater likelihood that Apple likely will push the launch of the iPhone 18 base model and iPhone Air 2 from the Fall 2026 to the Spring 2027 (which we updated our models for in our last preview note – link), which should help drive price/mix and shift unit volumes into F2027.

Second, AAPL guided F2Q26E opex of $18.4-$18.7 bn, which would mark the first time on record that AAPL opex increased qoq in F2Q reflecting AAPL’s investments to support AI and new products, which we view as increasing the likelihood of success of AI Siri and Apple’s new product pipeline.

Third, AAPL had record gross margins in both Products and Services.

Products gross margins were minimally impacted by memory cost inflation but AAPL’s F2Q26E GM% outlook for 48-49% includes a greater impact from higher memory prices; this would still be record gross margins, though we acknowledge that incremental memory cost inflation is likely ahead.”

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.

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