TLDR
- Apple stock hit record highs on Tuesday, pushing its market value close to $4 trillion
- Goldman Sachs raised its price target to $279 and Wells Fargo to $290 ahead of October 30 earnings
- iPhone 17 sales jumped 14% year over year in the first 10 days in the US and China
- Analysts expect Apple to beat consensus estimates with $1.77-$1.81 earnings per share on revenue above $101 billion
- Services revenue is projected to grow 13% year over year, driven by iCloud, AppleCare, and Apple Pay
Apple shares reached new record highs on Tuesday as the company’s market value moved closer to the $4 trillion milestone. The stock rose around 1% following positive analyst reports and strong early sales data for the iPhone 17.
Goldman Sachs increased its 12-month price target on Apple to $279 per share from $266. The firm maintained its buy rating ahead of Apple’s fiscal fourth-quarter earnings report on October 30.
Analyst Michael Ng expects Apple to report earnings of $1.81 per share on revenue of $103.5 billion. This compares to Wall Street’s consensus forecast of $1.77 per share on revenue of $101.8 billion.
Wells Fargo also raised its price target on Apple to $290 from $240. Analyst Aaron Rakers kept his overweight rating and expects earnings of $1.79 per share on revenue of $102.4 billion.
The positive outlook comes after Counterpoint Research reported that iPhone 17 sales increased 14% year over year during the first 10 days of availability in the US and China. Standard iPhone 17 sales grew by nearly one-third during this period.
Services Revenue Shows Strong Growth
Ng highlighted services revenue as a key strength for Apple. He projects a 13% year-over-year increase in this segment.
The analyst expects continued momentum across iCloud, AppleCare, Apple Pay, and other subscription services. This growth is expected despite slower App Store spending trends.
Rakers noted that investors are watching Apple’s artificial intelligence development. Some worry the company may be behind competitors like Google and Samsung in AI features.
However, Rakers believes Apple’s ecosystem provides a long-term advantage. He said the company is well positioned to integrate AI features across its devices due to its strong ecosystem and design approach.
iPhone Demand Drives Optimism
Loop Capital upgraded Apple stock to buy from hold earlier this week. Analyst Ananda Baruah cited stronger-than-expected iPhone demand as the reason for the upgrade.
Baruah said Apple is at the start of a long-anticipated adoption cycle. He expects iPhone shipments to expand through 2027 due to regular refresh cycles and new design features.
The iPhone 17 offers several improvements over the previous model. These include a better chip, improved display, higher base storage, and an upgraded selfie camera at the same price as the iPhone 16.
Counterpoint Research senior analyst Mengmeng Zhang called the base model iPhone 17 “very compelling to consumers.” She said it offers great value for money, especially when combined with carrier discounts.
The iPhone 17 Pro and Pro Max models have seen strong demand thanks to higher carrier subsidies. The new iPhone Air model is slightly outselling the iPhone 16 Plus that it replaced.
Apple’s latest iPhones include camera upgrades, more powerful processors, and longer battery life. The Pro models feature enhanced camera zoom capabilities, while the Air has a thinner and lighter design.
Wall Street is still waiting for Apple to deliver its AI-enhanced version of Siri. The company initially planned to release this feature by June but delayed it due to performance issues.
Get 3 Free Stock Ebooks
Discover top-performing stocks in AI, Crypto, and Technology with expert analysis.
- Top 10 AI Stocks - Leading AI companies
- Top 10 Crypto Stocks - Blockchain leaders
- Top 10 Tech Stocks - Tech giants
