Potential AI market leader: what analysts are saying ahead of Apple's report

Apple will be one of the main beneficiaries of the development of artificial intelligence, said Bank of America. On the eve of the publication of the quarterly report, an analyst of the bank recommended adding Apple to the portfolio, expecting growth of quotations by 19%. Not everyone shares his optimism on the market: despite the high demand for the latest iPhones, analysts at UBS and DA Davidson refrained from recommending buying Apple shares, which are trading near the historic high. What is being said on Wall Street in anticipation of the company's report?

Bank of America analyst Vamsi Mohan raised his target price on Apple shares from $270 to $320 and reiterated Buy advice ahead of the company's quarterly report, CNBC reports. Mohan's new target is the highest on Wall Street, MarketWatch data shows. It implies a 19% rise in shares of the iPhone maker from the close of previous trading. Despite the company's large size, it is well-positioned for sustained growth over the long term, the analyst said.

The analyst predicts that Apple will eventually become one of the main beneficiaries of the development of artificial intelligence. According to him, a strong brand, ecosystem and large user base already provide Apple with a sustainable competitive advantage. BofA estimates that Apple's earnings per share could more than double between 2024 and 2030, thanks to sustained growth in new products and services. "We estimate the impact of AI on Apple's revenue: it could drive new product development - such as AI-enabled glasses or Apple's own smart home devices - but also have a destabilizing effect on traditional revenue sources such as search advertising," Ma said in a note cited by CNBC.

Mohan also noted sustained strong demand for the iPhone 17 Pro and Pro Max and raised his sales forecast. He expects Apple to forecast full-year revenue growth in the current quarter at the upper single-digit range.

On Oct. 28, analyst Baird also reiterated an Outperform rating (above market) and raised his target price on Apple's stock from $230 to $280 - up 4% from the previous close. The analyst said he remains optimistic ahead of the company's report. "We expect solid results and outlook for the fiscal fourth quarter. While the iPhone 17 sales cycle is just beginning, early data looks encouraging - particularly the good device refresh rates released last week by AT&T and T-Mobile. However, the focus is likely to be on the outlook for the December quarter, and we estimate that current market expectations may be overly conservative given seasonal factors," said analyst Baird in a note cited by CNBC.

UBS maintained a neutral rating on Apple shares and a target price of $220 - down 18% from the close of previous trading. Despite signs of increased demand for individual iPhone 17 models, overall sales momentum remains moderate and Apple's stock valuation is already at historically high levels, the UBS analyst said. "We believe that demand for the base model, Pro and Pro Max are holding up relatively better year-on-year due to promotions," the analyst said, maintaining its iPhone shipments forecast for September and December 2025 at 55 million and 77 million units, respectively.

DA Davidson also reiterated a neutral rating on Apple shares and a $250 target price. The research firm expressed caution on Apple's current valuation, noting that the stock trades at the highest projected earnings-to-price multiple among peers, despite the lowest growth rate forecasts. The analyst also added that it is too early to draw conclusions about the prospects for iPhone sales - the device refresh cycle has only just begun.

Overall, about 60% of analysts who have assigned ratings to Apple stock advise investors to buy it (Buy and Overweight ratings). Another 30% are neutral with a Hold rating, while the rest recommend selling (Sell and Underweight). The Wall Street consensus price target is $255.9 - down 5% from the close on October 28.

Apple will report its fiscal fourth quarter earnings on Thursday, October 30. On average, analysts expect the company to report earnings of $1.77 per share on revenue of $102.1 billion for the past quarter, Yahoo Finance reports, citing Bloomberg surveys. In the same quarter last year, those numbers were $1.64 and $94.9 billion, respectively.

In trading on October 29, Apple shares jumped 0.9% to $271.4. This became their historical maximum. Then, however, the quotes lost part of the growth. Since the beginning of the year, the market value of Apple grew by 7%. For comparison: the main U.S. stock index S&P 500 added about 17% over the same period.

This article was AI-translated and verified by a human editor