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Apple Stock Gains Amidst Analyst Price Target Boosts
13 Oct
Summary
- JPMorgan raised Apple's price target to $360, maintaining an Overweight rating.
- Apple's new iPhone cycle is driven by premium price increases, not volume.
- SpaceX's Starlink Mobile poses a subsidy risk to Apple, not an immediate earnings threat.
Apple's stock advanced on Monday following positive analyst notes. JPMorgan increased its price target for Apple to $360, keeping an Overweight rating, and noted that reports of supplier cuts reflect a new launch cadence, not a weaker cycle for the iPhone 18 series.
Analysts believe Apple's current cycle is influenced by premium price increases, with average selling prices expected to rise by 20%. This strategy aims to offset an anticipated 18% year-over-year drop in iPhone shipments for the December quarter.
Furthermore, BofA reiterated a Buy rating and a $370 price objective. While acknowledging SpaceX's Starlink Mobile agreement as a potential risk to carrier subsidies, they view it as a long-term valuation concern rather than an immediate earnings threat.
BofA estimates that a significant shift of subscribers to SpaceX could impact Apple by approximately 5 million units, translating to about $6 billion in revenue, with effects more likely seen by fiscal 2028.
