Key Takeaways:
Evercore ISI boosted its price target on Apple Inc. (NASDAQ: AAPL) to $365, an 11% increase from its previous $330 target, citing confidence in the company’s ability to compound earnings without relying on significant iPhone unit growth.
"We see a path for AAPL to compound EPS/FCF at low/mid-teens pace even if iPhone units were to grow modestly given durable Services growth and ASP tailwinds from a shift towards premium models," Evercore ISI analyst Amit Daryanani said in a note to clients.
The reiterated Outperform rating reflects a thesis built on three core drivers: sustained growth in Apple’s high-margin Services division, higher average selling prices from a premium iPhone mix, and an aggressive capital return program. Apple recently posted an all-time Services revenue record of $30.976 billion, up 16% year-over-year, and authorized a $100 billion share buyback.
The new target comes as Apple shares trade near a 52-week high, having rallied 16% over the past month. For long-term investors, Evercore’s note frames Apple as a compounder whose valuation is supported by its massive 2.5 billion active device installed base—a key advantage for distributing and monetizing future services, including its push into artificial intelligence.
Evercore’s bull case of $500 per share depends on this services-led narrative accelerating, coupled with a potential AI-driven iPhone upgrade cycle. The firm’s base case of $365 already sits well above the consensus analyst target of $305.28. However, the bear case points to regulatory pressure on the App Store and the risk of slower upgrade cycles in saturated smartphone markets.
The upgrade reinforces a bullish outlook ahead of Apple's Worldwide Developers Conference (WWDC) starting June 8, where investors anticipate significant updates on the company's AI strategy. The stock’s performance will test support from its recent record highs as the market weighs the path to monetization for "Apple Intelligence."
This article is for informational purposes only and does not constitute investment advice.
