BofA Securities Reiterates Buy on Apple, $380 PT

BofA Securities analyst Wamsi Mohan reiterated a Buy rating and $380 price target on Apple (NASDAQ: AAPL).

“As we head into F3Q26 (Jun Q) earnings after market close on Thur July 30th, investor focus will be on component cost inflation, durability of gross margins and the end of an era with Tim Cook as CEO.

We expect AAPL to beat consensus in the June qtr.

While the iPhone build plans remain extremely robust (including Pro Models), we have incorporated a more conservative outlook overall given the staggered launch of iPhones (Pro, ProMax and Fold in Sep and base model, Air in March) and higher prices.

For product GMs, we model a decline sequentially in the June (-190bps q/q to 36.8%) and Sep qtrs (-280bps q/q to 34.1%).

We see this as transitory and see product margins recovering to 38.5% in the Dec quarter as new iPhones launch at higher prices (including foldable) and potential benefit from tariff recovery ($3bn).

Our F3Q rev/EPS are $109bn/$1.89 vs. Street $108bn/$1.87 (we model rev +16% y/y vs guidance 14-17% y/y).

We model GM of 48.2% (vs. guidance 47.5-48.5%) but see sequentially lower margins in F4Q (Sep Q) on mix and higher component costs, offset somewhat by price increases.

Reit Buy.”

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