Rothschild Predicts Apple Stock Will Rise 31% Thanks to the Foldable iPhone

The market is currently undervaluing the anticipated first foldable iPhone, and investors should take advantage of this, according to Rothschild & Co. analyst Timm Schulze-Melander, as quoted by CNBC. Rothschild has upgraded Apple’s stock rating from “neutral” to “buy,” and its new price target of $400 implies 31% upside potential from the latest closing price.

A potential foldable iPhone will enter the “ultra-premium segment of the smartphone market,” which “aligns perfectly with Apple’s brand positioning, suggesting that a well-designed product is likely to be a market success,” according to Schulze-Melander.

"The strength of Apple's product lineup and its entry into the foldable device market appear to be underestimated by the market. We expect Apple’s entry into the ultra-premium segment of foldable phones to increase the average selling price of the iPhone by 11% by June 2027,” the analyst noted.

According to forecasts by Rothschild & Co., sales of the foldable iPhone Ultra model will total 14 million units in fiscal year 2027. Of these, by conservative estimates, only 4 million will “cannibalize” sales of traditional iPhones—out of a total volume of 257 million units: this represents a limited impact of 2%, the strategist notes.

Apple has not yet officially confirmed plans to release a foldable phone. However, numerous media reports suggest that the company is preparing to unveil it in the near future, according to CNBC.

Apple shares fell 0.3% during trading on August 17. They have risen 12.5% since the beginning of the year, although they have lost 6% of their value over the past month.

Most analysts covering Apple stock have a positive outlook on it: 31 out of 47 experts recommend buying it (Buy and Overweight ratings), according to MarketWatch. Another 11 advise holding (Hold), and five advise selling (Sell and Underweight).

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