UBS Maintains Neutral on Apple, $296 Price Target

UBS analyst David Vogt reiterated a Neutral rating and $296 price target on Apple (NASDAQ: AAPL).

“Apple reported in-line quarter (link) highlighted by solid iPhone demand as we previewed but weaker ‘Services’ growth.

Therefore, we expect investor pushback after Apple’s shares gained ~15% in July amid the AI infrastructure unwind, versus declines of 1% for the S&P 500 and ~18% for the SMH.

Tougher iPhone comparisons, modest Services growth, and gross margin pressure over the next several quarters into FY27 could reverse defensive positioning, with limited room for multiple expansion: Apple’s NTM P/E premium to the S&P 500 has risen to ~71% from ~50% at June-end, while our FY27/28 revenue and EPS estimates are largely unchanged.

Although Apple’s cash flow is less impacted by AI-related capex than Mag 7 peers, its lack of a robust AI strategy remains a challenge in our view.

With limited estimate upside and an elevated valuation, our Neutral rating is unchanged.”

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