B of A Securities Raises Apple Price Target to $240, Maintains Buy Rating

B of A Securities Raises Apple Price Target to $240, Maintains Buy Rating

Bank of America Securities (BofA) has raised its price target for Apple Inc. (AAPL) to $240, while maintaining a "Buy" rating on the stock. This move comes amidst mixed analyst sentiments and recent financial performance from the tech giant. The upgrade follows a series of updates from other major financial institutions, including Evercore ISI and Wedbush, which have also expressed bullish views on Apple's stock.

Apple's stock has been volatile in 2025, with shares down approximately 16% year-to-date (YTD) as of the latest data. The company has faced challenges such as sluggish growth, limited artificial intelligence (AI) monetization, and tariff-related headwinds. However, BofA Securities sees potential in Apple's ecosystem strengths and expects the company to stabilize and potentially turnaround its performance.

The recent earnings report showed a 5% year-over-year (YOY) increase in revenue to $95.4 billion, with the Services segment growing 11.6% YOY to a record high of $26.6 billion. The company's gross margin was 45.5% to 46.5%, and the consensus estimate for fiscal 2025 EPS is $1.42, indicating a 1.4% YOY increase. Despite these positive indicators, the stock has faced skepticism due to concerns over soft iPhone sales, particularly in China, and broader macroeconomic challenges.

The release of the public beta version of iOS 26 has generated interest, with its "Liquid Glass" design and new features such as real-time translation in iMessage and FaceTime. However, the lack of anticipated Siri upgrades has been a disappointment for investors. Analysts remain divided on Apple stock, with 18 recommending a "Strong Buy," three a "Moderate Buy," 14 a "Hold," and two a "Strong Sell."

The consensus analyst price target for AAPL is $231.46, suggesting potential upside of 10%, while the Street-high target price of $300 indicates as much as 44% upside from current levels. BofA Securities' upgrade to $240 reflects a cautiously optimistic view, acknowledging the challenges Apple faces while highlighting its long-term growth potential.

References:
[1] https://finance.yahoo.com/news/apple-teases-ios-26-aapl-135330918.html
[2] https://www.theglobeandmail.com/investing/markets/stocks/AAPL/pressreleases/33806632/new-buy-rating-for-apple-aapl-the-technology-giant/
[3] https://www.tradingview.com/news/tradingview:8e7c265f1bf7e:0-apple-inc-sec-10-q-report/