Goldman Sachs reiterates Buy rating on Apple stock ahead of September event

Goldman Sachs and BofA Securities have reiterated Buy ratings on Apple (AAPL), with price targets of $266 and $250 respectively, ahead of the company's September 9, 2025 product launch event. Goldman Sachs anticipates iPhone 17 form factor changes, potential Pro model price increases, and forecasts iPhone revenue growth of 5% in FY2025 accelerating to 7% in FY2026. Concurrently, Apple increased its Apple TV+ subscription to $12.99/month, while InvestingPro data suggests the stock is currently trading above its fair value.

Analysis

Apple (AAPL) is receiving strong bullish support from Wall Street ahead of its September 9, 2025 product launch event, with both Goldman Sachs and BofA Securities reiterating 'Buy' ratings and setting price targets of $266 and $250, respectively. The positive sentiment is primarily driven by expectations for the upcoming iPhone 17 lineup, which is anticipated to feature significant form factor updates, including a thinner 'Air' model and larger base screens, alongside a potential price increase for the Pro models. Goldman Sachs projects these catalysts will fuel iPhone revenue growth of 5% in fiscal 2025, accelerating to 7% in fiscal 2026. This product cycle momentum is complemented by a recent $3 price increase for the Apple TV+ subscription service to $12.99 per month, bolstering the high-margin services division. However, this optimism is tempered by a key valuation signal from InvestingPro, which suggests Apple's stock, currently at $228.44, is trading above its calculated Fair Value. Concurrently, the competitive landscape in AI remains intense, highlighted by Meta Platforms hiring a key Apple AI executive.

Key Decisions for Investors

• Consider the upcoming September 9th product launch a primary catalyst, as the market's bullish reaction will depend heavily on whether the unveiled iPhone 17 features validate the strong analyst expectations for form factor innovation and pricing power.
• Weigh the bullish analyst price targets of $250-$266 against the conflicting signal that the stock may be trading above its intrinsic fair value, suggesting that a position may require a long-term view that looks past current valuation metrics.
• Monitor the impact of the Apple TV+ price hike on services revenue growth and subscriber numbers, as this represents a key lever for margin expansion independent of the hardware product cycle.
• Acknowledge the heightened competition for AI talent, as the loss of executives to rivals like Meta could pose a medium-term risk to Apple's innovation pipeline in this critical technology sector.