Apple Stock Has More Upside: Analyst Says 'The Street is Clearly Underestimating This iPhone Cycle'

Apple (AAPL) is demonstrating robust early demand for its iPhone 17, especially Pro models and in China, prompting Wedbush to raise its price target to $310 and Bank of America to reiterate its Buy rating. Analysts note demand tracking 10-15% ahead of the iPhone 16, anticipating a significant upgrade cycle driven by pent-up consumer demand and design enhancements that could push FY26 iPhone sales above current Street estimates. Furthermore, the unpriced AI monetization strategy is seen as a substantial upside, potentially adding $75-$100 per share, positioning Apple as a key large-cap tech investment, with the stock reacting positively, up over 3%.

Analysis

Strong early demand signals for Apple's iPhone 17 are driving a bullish analyst consensus, underpinned by a potential major upgrade cycle. Wedbush analysis indicates that initial unit demand is tracking 10-15% ahead of the iPhone 16, prompting an increase in its price target to $310. This demand is attributed to a combination of design enhancements and a significant pent-up consumer base, with an estimated 315 million iPhones not having been upgraded in the last four years. Consequently, fiscal 2026 iPhone sales could reach 240-260 million units, substantially above the current Street consensus of 230 million. The demand appears particularly robust for the premium Pro models and within the crucial China market, where extended shipping times suggest a potential reversal of recent negative growth trends. Beyond the hardware cycle, analysts highlight a significant, yet unpriced, catalyst in Apple's AI strategy. Wedbush estimates that the monetization of AI across Apple's 2.4 billion iOS devices could add $75 to $100 per share in value, positioning the stock favorably among large-cap tech for 2026. The market has reacted positively to this outlook, with AAPL shares rising 3.83% to $254.72.

Key Decisions for Investors

• Given that early iPhone 17 demand is reportedly tracking 10-15% ahead of its predecessor and analysts are raising sales forecasts for fiscal 2026, investors should recognize the potential for a significant hardware upgrade cycle that could provide further upside to the stock.
• It is prudent to closely monitor developments in Apple's AI strategy, as its successful monetization across the massive installed base is viewed by analysts as a major catalyst that could unlock an additional $75 to $100 per share in value.
• Investors should watch key metrics such as iPhone 17 Pro lead times and sales trends in China, as these data points will serve as crucial validation for the thesis of a strong, high-margin upgrade cycle and a rebound in a critical growth region.