Goldman Sachs, Wells Fargo lift price targets for Apple heading into iPhone maker’s earnings

Goldman Sachs and Wells Fargo have raised their price targets for Apple (AAPL) to $279 and $290, respectively, ahead of its fiscal fourth-quarter earnings report on Oct. 30. Both firms anticipate strong performance, driven by robust services revenue growth and continued iPhone demand, with Goldman Sachs expecting an earnings beat. Wells Fargo also highlighted Apple's significant potential to integrate AI seamlessly across its ecosystem, reinforcing a bullish long-term outlook for the company.

Analysis

Goldman Sachs and Wells Fargo have significantly raised their price targets for Apple (AAPL) ahead of its fiscal fourth-quarter earnings report, reflecting a strongly positive outlook. Goldman Sachs increased its 12-month target to $279 from $266, implying a 6% upside from Apple's Monday closing price of $262.24, while Wells Fargo lifted its target to $290 from $240, signaling a 10.6% gain. Both firms anticipate Apple to surpass consensus estimates, with Goldman Sachs projecting EPS of $1.81 on $103.5 billion revenue, exceeding the $1.77 EPS and $101.8 billion revenue consensus.

A key driver for this optimism is the expected robust performance in services revenue, which Goldman Sachs forecasts to grow 13% year-over-year, maintaining momentum through iCloud+, AppleCare+, and other subscription services despite some App Store spending deceleration. Continued strength in iPhone demand, supported by U.S. carrier competition and future form factor changes like the iPhone 18 foldable, is also expected to bolster performance into fiscal 2026.

Wells Fargo specifically highlighted Apple's potential in artificial intelligence, noting that despite investor debate about Apple lagging rivals, its strong ecosystem and intuitive design position it well to seamlessly integrate personalized AI features across devices. The analyst cited recent OS releases incorporating small AI features like live translation and visual intelligence as evidence of this ongoing strategy.

Overall, the analyst sentiment, reflected in the raised price targets and positive earnings forecasts, underscores confidence in Apple's fundamental growth drivers and its strategic positioning to capitalize on emerging technological trends like AI, reinforcing a bullish long-term perspective.

Key Decisions for Investors

• Investors should closely monitor Apple's upcoming fiscal Q4 earnings report on October 30th for confirmation of strong services revenue growth and any specific commentary on its AI roadmap.
• Given the raised price targets and positive analyst sentiment, consider maintaining or increasing exposure to AAPL, particularly for long-term growth portfolios.
• Pay attention to management's guidance regarding future iPhone demand and the integration of AI features, as these will be critical indicators for sustained growth and competitive positioning.