BofA Securities maintains Apple stock Buy rating on App Store growth

Published 05/08/2025, 18:32
© Reuters.

Investing.com - BofA Securities has reiterated its Buy rating and $240.00 price target on Apple (NASDAQ:AAPL), citing strong App Store revenue growth in the fiscal fourth quarter of 2025. According to InvestingPro data, Apple currently trades at $204.07 with a market capitalization of $3.03 trillion, and 21 analysts have recently revised their earnings estimates upward for the upcoming period.

According to SensorTower data referenced by BofA, App Store revenues increased 12.1% year-over-year to $3.3 billion after 35 days of the quarter, while total downloads across iPhone and iPad rose 2.4% year-over-year to 3.5 billion during the same period. This growth aligns with Apple’s broader revenue trend, as the company has maintained a healthy 5.97% year-over-year revenue growth in the last twelve months.

The data shows App Store dollars per download have increased to $0.95, representing a 9.5% year-over-year growth in the fiscal fourth quarter so far.

For July specifically, global App Store revenue grew 13% year-over-year, outpacing app download growth of 3% during the same period.

BofA Securities maintains its price objective of $240 based on a 29x multiple of calendar 2026 estimated earnings per share of $8.37, citing strong capital returns, eventual success in edge AI, and optionality from new products and markets. Based on InvestingPro’s comprehensive analysis, Apple currently appears slightly overvalued, though the company maintains a "GOOD" overall financial health score. Discover 12 more exclusive ProTips and detailed valuation metrics with an InvestingPro subscription.

In other recent news, Apple reported its fiscal third-quarter earnings for 2025, surpassing analyst expectations with a revenue of $94 billion and an earnings per share (EPS) of $1.57. The company exceeded forecasts by 5.66% for revenue and 10.56% for EPS. Goldman Sachs maintained its Buy rating on Apple, citing strong App Store performance with spending growing 13% year-over-year in July 2025. Meanwhile, BofA Securities and Morgan Stanley (NYSE:MS) both raised their price targets for Apple to $240, highlighting the company’s strong quarterly performance and guidance that exceeded consensus. Morgan Stanley noted Apple’s June quarter performance exceeded expectations across Products, Services, and gross margins. Barclays (LON:BARC) also adjusted its price target to $180 from $173 while maintaining an Underweight rating, noting strong iPhone and Mac sales. These developments reflect recent positive momentum for Apple in various segments, including hardware and services.

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