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Investing.com - TD Cowen has lowered its price target on Apple (NASDAQ:AAPL) to $325 from $375 while maintaining a Buy rating on the stock. Currently trading at $271.40, Apple remains near its 52-week high of $274.14, with InvestingPro data showing the stock is trading at a premium with a P/E ratio of 41.26.
The firm noted that Apple’s September 2025 quarter revenues grew 8% year-over-year despite supply constraints, while the December quarter guidance for 10-12% growth exceeded Street forecasts, driven by strong iPhone 16 and 17 demand. This guidance outpaces Apple’s current revenue growth rate of 5.97% for the last twelve months, with the company generating $408.62 billion in revenue.
TD Cowen highlighted that while tariff impacts were in line with expectations, Apple achieved an impressive gross margin expansion of 100 basis points year-over-year. The company currently maintains a healthy gross profit margin of 46.68%, according to the latest financial data.
The firm also pointed to positive mid-double-digit percentage growth in Apple’s Services segment as a favorable trend for the company.
TD Cowen indicated that while Apple’s increased R&D spending on AI is necessary for competitiveness, the stronger fiscal year 2026 growth outlook helps offset concerns about negative operating leverage.
In other recent news, Apple reported its fourth-quarter earnings, showcasing strong financial performance with earnings per share of $1.85, surpassing the analyst forecast of $1.76. The company’s total revenue for the quarter reached $102.5 billion, slightly above the anticipated $101.69 billion. This performance reflects a year-over-year revenue growth of 7.9% and gross margins reaching 47.2%, exceeding the high end of its guidance. Notably, Apple’s Services revenue outperformed expectations, although iPhone revenue fell short due to supply constraints rather than demand issues.
In response to these results, Evercore ISI raised its price target for Apple to $300 from $290, maintaining an Outperform rating. Similarly, Goldman Sachs increased its price target to $320 from $279, keeping a Buy rating, citing strong iPhone demand. These developments highlight the positive sentiment among analysts regarding Apple’s recent performance and future prospects.
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