Apple stock price target raised to $290 from $260 at Evercore ISI

Investing.com - Evercore ISI raised its price target on Apple (NASDAQ:AAPL) to $290 from $260 while maintaining an Outperform rating, citing strong iPhone refresh cycle potential based on its annual consumer survey. The stock, currently trading at $254.9, sits near its 52-week high of $260.1, with a robust P/E ratio of 38.77. According to InvestingPro analysis, Apple’s current valuation suggests the stock may be trading above its Fair Value.

The firm’s survey of nearly 4,000 consumers revealed increased interest in hardware upgrades, with respondents highlighting the new camera, battery, and screen as key drivers for purchases, while interest in AI features declined. This hardware-focused interest represents a shift from last year when Apple Intelligence features drove initial excitement but later disappointed. With a market capitalization of $3.78 trillion and revenue growth of ~6% over the last twelve months, Apple continues to demonstrate its market dominance. InvestingPro subscribers can access 16 additional key insights about Apple’s market position and growth metrics.

Premium models continue to dominate consumer interest, with 56% of respondents planning to purchase either the iPhone 17 Pro or Pro Max, exceeding the historical average of 50%. Evercore ISI also noted a trend toward higher memory configurations, with average memory per iPhone expected to reach 430GB compared to 318GB last year, potentially driving average selling prices up by approximately 7% year-over-year. This aligns with Apple’s strong financial health score of GOOD on InvestingPro, which offers comprehensive analysis through its Pro Research Report, available for over 1,400 US stocks.

The survey indicated weaker-than-expected demand for the new iPhone Air, with only 9% of respondents planning to purchase this model, below trends previously seen for the now-discontinued Plus models. Consumers appear skeptical about the Air’s single camera (versus multiple cameras on other models) and battery life despite its differentiated design.

Apple’s services segment showed notable strength in the survey, with four of five tracked categories experiencing growth, led by Apple Pay which increased by 7 percentage points following recent legal resolutions, providing a positive tailwind for the segment.

In other recent news, Apple has seen promising demand for its iPhone 17 series, as noted by BofA Securities, which reiterated its Buy rating and set a price target of $270. The firm highlighted that increased carrier incentives and extended payment plans have made the new iPhones more accessible, despite a higher base price for the iPhone 17 Pro. Meanwhile, UBS maintained a Neutral rating with a $220 price target, observing heightened wait times for the iPhone 17 Base model in key markets, although demand for other models appears less robust.

In potential strategic moves, Apple is reportedly in early discussions with Intel for possible collaboration in chip manufacturing, design, or packaging, according to Bloomberg. This potential investment is seen by DeepWater Asset Management’s Gene Munster as politically motivated rather than strategically beneficial. Additionally, Apple has requested the European Union to repeal or scale back the Digital Markets Act, citing business challenges posed by the law.

Finally, Apple is set to reopen its redesigned Ginza store in Tokyo, featuring modern design elements and sustainable energy use, marking a significant milestone for its first retail location outside the United States.

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