Rating
Buy
Price target
$365
Previous
$330
Implied upside
+22%

Evercore ISI analyst Amit Daryanani raised the price target on Apple (NASDAQ: AAPL) to $365.00 (from $330.00) while maintaining an Outperform rating.

“In this 6th annual AAPL Primer, we provide an in-depth perspective on the key investment themes that will define the AAPL debate over the next several years.

While investors continue to over-index on near-term memory headwinds and timing of Apple Intelligence, we think the more durable story is Apple’s unrivaled ecosystem that enables them to sustain mid/high-single digit revenue growth and low/mid-teens EPS/FCF growth through a combination of: 1) continued Services mix shift driving corporate gross margins higher – ARPU over Units; 2) ongoing premiumization of the iPhone portfolio, with the expected foldable launch creating another ASP/mix tailwind; 3) share gain potential in a more chaotic supply chain environment where AAPL’s execution stands out; 4) robust capital returns; and 5) AI monetization optionality that remains absent from investor numbers.

Net/Net: We see a path for AAPL to compound EPS/FCF at low/midteens pace even if iPhone units were to grow modestly given durable Services growth and ASP tailwinds from a shift towards premium models.

In addition, the AI debate is more asymmetric than investors appreciate, as a successful Apple Intelligence launch this fall could unlock multiple monetization paths without requiring AAPL to match the capex intensity of hyperscalers.

Reiterating our OP rating but raising our target to $365 (from $330), with our Bull Case target at $500.”

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