BofA Securities maintains Apple stock Buy rating on App Store growth

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.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.