Evercore ISI reiterates outperform rating for Apple stock

Published 03/06/2025, 21:56
© Reuters.

On Tuesday, Evercore ISI analysts reiterated an Outperform rating for Apple stock (NASDAQ:AAPL) with a price target of $250, above the current trading price of $203.32. According to InvestingPro data, analyst targets for Apple range from $170.62 to $300, with the stock currently trading above its Fair Value estimate. The analysts highlighted tempered expectations for this year’s Worldwide Developers Conference (WWDC) compared to previous years, citing fewer significant announcements.

The analysts noted that Apple is likely to unveil its foundation models to app developers, enabling on-device AI capabilities. Additionally, Apple may expand its Apple Intelligence partnerships beyond OpenAI, with Perplexity and Gemini as potential new partners. A major overhaul of Apple’s operating systems is anticipated, including a new naming convention with the year at the end, such as iOS 26. As a prominent player in the Technology Hardware industry with $400.37 billion in revenue over the last twelve months, Apple maintains strong profitability with a 46.63% gross margin.

A new AI-powered battery management feature is expected to be announced, addressing a key consumer concern. The company is also set to introduce a centralized gaming app, which will come preinstalled, as gaming constitutes approximately 50% of App Store revenue.

The analysts commented on Apple’s strategy to focus on smaller scale on-device models and efficient large-scale models, avoiding the extensive AI capital expenditure seen among its peers. Instead, Apple plans to generate returns through a capital-light model, charging fees to model providers for access to iOS users.

Overall, the analysts predict a low-key WWDC with incremental improvements and no major hardware announcements. They expect more significant updates to be revealed in 2026, maintaining their Outperform rating and $250 price target for Apple. InvestingPro analysis reveals 13+ additional key insights about Apple’s financial health, growth prospects, and market position, available exclusively to subscribers through comprehensive Pro Research Reports.

In other recent news, Apple’s financial performance and strategic moves have garnered attention from various analysts. TD Cowen reiterated a Buy rating for Apple, maintaining a price target of $275, emphasizing the company’s potential to leverage generative AI advancements in the smartphone industry. Meanwhile, JPMorgan also maintained an Overweight rating with a $240 price target, noting that upcoming announcements at the Worldwide Developers Conference (WWDC) could include expanded AI capabilities, although they are considered incremental. Evercore ISI kept an Outperform rating and a $250 price target, highlighting a 13% growth in App Store revenue in May, which suggests cautious optimism despite recent regulatory challenges. Goldman Sachs echoed a positive sentiment with a Buy rating and a $253 price target, citing the App Store’s significant contribution to Apple’s services revenue, which saw a 12% year-over-year growth. Lastly, Citi reaffirmed a Buy rating with a $240 price target, as anticipation builds for WWDC, where Apple is expected to unveil significant software updates and potentially new products. These developments reflect a mix of optimism and caution among analysts regarding Apple’s financial health and strategic direction.

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

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