Apple stock rating reiterated at Buy by TD Cowen ahead of earnings

Investing.com - TD Cowen has reiterated its Buy rating and $275.00 price target on Apple (NASDAQ:AAPL), currently trading at $266.39, ahead of the company’s upcoming earnings report on October 30. With a market cap of nearly $4 trillion, Apple remains a dominant force in technology. According to InvestingPro analysis, the stock is trading near its 52-week high, though current valuations suggest it may be overvalued.

The firm expects Apple to report September quarter revenues in line with or above Wall Street’s projection of 7.5% year-over-year growth, with December quarter guidance showing high single-digit percentage growth.

iPhone unit sales are anticipated to increase by low single digits year-over-year, with current demand primarily driven by replacement purchases, which TD Cowen believes could evolve into a stronger AI-driven upgrade cycle in 2026 and beyond.

The research firm projects Apple’s Services segment to grow by 13% year-over-year, noting that Google search advertising revenue remains intact as a key contributor.

TD Cowen highlighted "markedly positive" sentiment surrounding Apple stock, citing encouraging consumer reception for the iPhone 17 and the continuation of the Google search advertising revenue stream, while suggesting that more advanced hardware features in the second half of 2026 could further accelerate iPhone growth.

In other recent news, Apple’s earnings and revenue projections have caught the attention of analysts, with DA Davidson reiterating a Neutral rating and setting a $250 price target. The firm expressed caution about Apple’s current valuation, pointing out that it holds the highest forward earnings multiple among its peers, despite having the lowest expected growth rates. Additionally, UBS maintained its Neutral rating on Apple, with a $220 price target, noting that iPhone 17 wait times are showing a flat to lower trend week-over-week across 30 geographies. In terms of shipments, iPhone sales saw a 16% year-over-year and 39% month-over-month increase in July, contrasting with a decline in Android sell-through.

Meanwhile, Globalstar is in the spotlight following rumors of a potential $10 billion sale discussed by its chairman, James Monroe. This potential sale price would represent a significant premium over Globalstar’s current market capitalization of approximately $5.3 billion. Reports suggest that the deal could signify an effort by Globalstar and Apple to seek greater independence from each other. These developments highlight ongoing strategic maneuvers and market dynamics affecting both Apple and Globalstar.

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