JPMorgan lifts Apple target to $315, sees upside into earnings
JPMorgan expects Apple to outperform in its fiscal first quarter, pointing to stronger-than-expected iPhone demand and lower operating expenses as key drivers.
The bank reiterated its overweight rating and raised its price target to $315 from $305, implying around 27% upside from current levels, reports CNBC.
Apple reports earnings on Thursday, and JPMorgan believes the market is underappreciating the near-term setup into that print. Over the past 12 months, Apple shares are up 11%, slightly trailing the S&P 500’s 13.4% gain. Analyst Samik Chatterjee argued that this relative lag has created a more attractive entry point. In his view, the valuation backdrop looks supportive heading into what could be a pivotal product-cycle stretch.
iPhone demand vs. margin anxiety
Chatterjee said investor attention has been dominated by concerns around gross margin pressure, mainly due to a sharp rise in memory costs. He also flagged ongoing worries about iPhone pricing elasticity and softer intra-quarter signals for App Store Services growth. Despite that, he believes data points tied to robust iPhone 17 demand have been strong enough to offset the noise. JPMorgan highlighted that Apple is trading at roughly 30x next-twelve-month earnings, below the typical peak multiple seen heading into major iPhone cycles.
For context, Chatterjee noted Apple traded closer to ~32x ahead of the 5G-driven iPhone upgrade wave. That valuation gap, combined with expectations for modest upside, supports a more constructive stance into results. Overall, the bank sees the market’s caution as potentially overdone relative to the fundamentals.
Costs easing, Services still a swing factor
JPMorgan expects Apple to beat both earnings and revenue estimates this quarter, helped by iPhone strength and operating expenses coming in below guidance. The bank also sees a similar pattern in the March quarter, suggesting momentum could carry beyond just one print. Importantly, Chatterjee believes the margin hit from higher memory costs may prove more limited than feared as the year progresses.
On the Services side, he expects growth closer to 7% year-over-year, which would be below Apple’s 14% guidance, keeping that segment a focus point for investors. Still, he emphasized Apple has “multiple levers” beyond the App Store that can support Services expansion over time. If those levers start showing up more clearly in results or guidance, it could help re-rate sentiment even if Services growth remains uneven short term.
Recently we wrote that president Donald Trump has filed a $5 billion lawsuit in Florida state court accusing JPMorgan Chase and CEO Jamie Dimon of closing his accounts and cutting off banking services for about seven weeks after the Jan. 6, 2021 Capitol riot, allegedly for political and reputational reasons.
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