UBS maintains Apple stock rating ahead of "Awe Dropping" event

Investing.com - UBS maintained its Neutral rating and $220.00 price target on Apple (NASDAQ:AAPL), currently trading at $239.69, ahead of the company’s "Awe Dropping" event scheduled for Tuesday. According to InvestingPro analysis, Apple’s current valuation appears stretched, with the stock trading at high earnings and EBITDA multiples.

The event, taking place at 1pm EST on September 9th, is expected to showcase the iPhone 17 lineup and other hardware products. UBS anticipates Apple will introduce the iPhone Air as a replacement for the Plus model in its product lineup.

Despite the introduction of a thinner device representing a new form factor, UBS believes this change will have a "muted impact on consumer purchasing decisions" and limited upside to iPhone forecasts for the September and December quarters.

UBS does not expect significant announcements regarding Apple Intelligence features for Siri until next spring, noting that only incremental software updates were revealed at WWDC25 in June. The firm acknowledges some investors anticipate an AI partnership announcement, potentially with Google.

The investment bank maintains that new hardware and AI capabilities are unlikely to drive increased iPhone demand, pointing out that "stand-alone AI applications are already available in the smartphone market."

In other recent news, Apple reported an 11.4% increase in its App Store revenue, reaching $6.0 billion in the fiscal fourth quarter of 2025. This growth was accompanied by a 2.2% rise in total downloads across iPhone and iPad devices, totaling 6.4 billion. In legal developments, Cerence Inc has filed a patent infringement lawsuit against Apple, alleging unlawful use of six patents related to text input, recognition, and voice command monitoring. On the analyst front, Jefferies raised its price target for Apple to $205.82, maintaining a Hold rating, citing factors such as tariff relief and expected AI-driven enhancements to Siri by 2026. HSBC also reiterated its Hold rating with a $220.00 price target ahead of Apple’s anticipated iPhone 17 launch. Meanwhile, MoffettNathanson upgraded Apple from Sell to Neutral, acknowledging that some previously concerning risks have diminished. These developments reflect ongoing interest and scrutiny from both analysts and competitors as Apple continues to navigate its business landscape.

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