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Investing.com - UBS maintained its Neutral rating and $280.00 price target on Apple (NASDAQ:AAPL) stock Tuesday, citing recent App Store revenue growth trends. The target represents a modest 4% upside from the current price of $268.71, with Apple trading near its 52-week high of $277.32. According to InvestingPro data, Apple appears overvalued compared to its Fair Value estimate, despite having a perfect Piotroski Score of 9.
Global App Store revenue grew approximately 8% on a currency neutral basis in October, about 110 basis points faster than September’s growth rate, according to UBS analyst data from Sensor Tower.
On a reported basis, global App Store revenue increased approximately 9% in October, marking the second consecutive month of high-single digit growth following September’s approximately 7% increase.
UBS noted a potential disconnect between App Store and overall Services revenue, pointing out that Apple reported Services revenue growth of approximately 15% last quarter compared to App Store growth of about 10%, despite the App Store comprising an estimated 25% of Services revenue.
While expressing caution about the App Store’s approximately 15% comparison in the December 2025 quarter, UBS suggested other segments like Payments could potentially offset any downside risk, similar to last quarter’s performance.
In other recent news, Apple reported strong quarterly earnings, with notable growth in iPhone revenue, which increased by 6% to $49.0 billion. However, this figure was slightly below UBS’s estimate of $50.3 billion, attributed to supply constraints that might defer some revenue to the December quarter. Following these results, several firms have adjusted their price targets for Apple. UBS raised its price target from $220 to $280, maintaining a Neutral rating, while DA Davidson increased its target from $250 to $270, also keeping a Neutral stance. Rosenblatt upped its price target to $250 from $241, citing momentum from the iPhone 17 and Apple’s fiscal first-quarter 2026 revenue guidance, which exceeded expectations. Despite removing Apple from its Tactical Outperform list, Evercore ISI continues to rate the stock as Outperform with a $300 target. These developments reflect the mixed reactions from analysts, balancing strong earnings with concerns over iPhone sales and supply challenges.
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