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.”
The price target and rating on this page are the opinion of the issuing research firm and its analyst, not of Price Target. This page is published for informational purposes only and is not investment advice, a recommendation, or an offer to buy or sell any security. Past performance does not guarantee future results. Consider your own circumstances and consult a licensed financial adviser before making investment decisions.
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.
