Bank of America raises Apple price target ahead of iPhone maker’s earnings report

Bank of America analyst Wamsi Mohan reiterated a "Buy" rating on Apple, raising his price target to $320 from $270, implying a 19% upside, ahead of its Q4 earnings report. Mohan anticipates sustained long-term growth for Apple, citing its strong ecosystem, competitive advantage, and potential leadership in AI, projecting EPS to more than double in six years. He expects robust iPhone 17 Pro/Pro Max sales and high single-digit year-over-year revenue growth guidance for the current quarter, aligning with broader bullish analyst sentiment.

Analysis

Bank of America analyst Wamsi Mohan has reiterated a "Buy" rating on Apple (AAPL), raising his price objective to $320 from $270, which implies a 19% upside for the stock. This bullish outlook comes ahead of Apple's fiscal fourth-quarter earnings report and reflects strong conviction in the company's long-term growth prospects. The updated target is supported by Apple's robust capital returns strategy and its potential as an eventual winner in edge AI.

Mohan highlights Apple's enduring competitive advantage, rooted in its strong brand, extensive ecosystem, and large installed base. He specifically identifies Apple as a key beneficiary of the artificial intelligence trade, projecting its emergence as a leader in new product categories such as AI-augmented eyewear and smart home devices. This strategic positioning is expected to significantly enhance revenues and could lead to a doubling of earnings per share within the next six years.

For the upcoming earnings, the analyst anticipates strong sales performance from the iPhone 17 Pro and Pro Max models, leading to raised unit estimates. Mohan expects Apple to guide for high single-digit year-over-year revenue growth for the current quarter, aligning with the predominantly bullish sentiment among analysts, where 33 of 51 rate the stock a "Buy" or "Strong Buy."

Key Decisions for Investors

• Consider maintaining or initiating long positions in Apple, aligning with the reiterated "Buy" rating and increased price target indicating significant upside potential.
• Closely monitor Apple's upcoming earnings report for confirmation of strong iPhone sales and high single-digit revenue growth guidance, which could validate the bullish analyst outlook.
• Evaluate Apple's strategic advancements and disclosures regarding AI integration, as this is identified as a key long-term growth driver and potential catalyst for future product innovation and EPS expansion.