UBS Raises Apple Price Target to $340

UBS analyst David Vogt raised the price target on Apple (NASDAQ: AAPL) to $340 (from $296) while maintaining a Neutral rating.

“Apple reported a broadly in-line quarter, with iPhone and Mac strength offset by supply-constrained iPad results, weaker Wearables and in-line Services.

Investor attention should turn to December-quarter gross margin guidance of 45% to 46%, below our already below-consensus estimates, and expected Services revenue growth of 8% to 9% as AI tools appear to cannibalize Google search activity QoQ.

Although a one- or two-percentage-point revenue growth slowdown has little impact on EPS, it will likely weigh disproportionately on Apple’s valuation multiples.

Services has contributed disproportionately to growth and gross margin, with its share of total revenue rising from ~20% in fiscal 2022 to ~26% in fiscal 2026.

With incremental Siri AI ramp costs weighing on December-quarter margins and Apple’s AI strategy still appearing nascent, particularly in agentic tools, we expect its P/E multiple to compress to ~31x from 36x.”

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