Wall Street analysts praised Apple's (NASDAQ:AAPL) iPhone 17 event for delivering thinner designs, upgraded cameras, and tighter AI-health integration, but cautioned that innovation remains incremental.
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While analysts highlighted stronger battery life, storage upgrades, and Apple's ability to deepen ecosystem loyalty, they also flagged lagging AI rollouts and reliance on replacement-driven demand as limiting a supercycle.
- Bank of America Securities analyst Wamsi Mohan maintained Apple with a Buy and raised the price forecast from $260 to $270.
- Rosenblatt analyst Barton Crockett reiterated Apple with a Neutral rating and raised the price forecast from $223 to $241.
- Goldman Sachs analyst Michael Ng maintained Apple with a Buy and a price forecast of $266.
Also Read: Goldman Sachs Sees Apple Revenue Acceleration As iPhone 17, AI Take Center Stage
Bank of America Securities: Mohan raised Apple's price forecast, citing stronger health and AI features integration in the iPhone 17 lineup and modestly higher financial estimates.
The analyst lifted his fiscal 2026 revenue and EPS forecast to $448 billion and $8.05, up from $446 billion and $8.03, while his calendar 2026 EPS estimate increased to $8.40 from $8.37. He applied a higher 32-time multiple (vs. 31-time prior) to reflect increased confidence in Apple's growth.
He noted that Apple's event largely met expectations. The iPhone 17 Air, starting at $999, features a thinner design and 256GB base storage, while the Pro models gain camera upgrades and new in-house chips. Mohan said Apple is well-positioned to lead edge AI with its silicon and hardware enhancements, even as shares typically dip post-event before recovering in 30–60 days.
Rosenblatt: Crockett raised Apple's price forecast after the iPhone 17 launch, which delivered stronger battery life, upgraded 48MP cameras across models, and offered a slimmer Air option at $899.
The analyst lifted his forward P/E assumption to 29 times from 27 times, citing durability in Apple's model now reinforced by favorable external developments—Alphabet Inc.‘s (NASDAQ:GOOG) (NASDAQ:GOOGL), Google's $20+ billion annual search payments upheld in an antitrust ruling, and Trump's tariff exemptions despite new trade pressures.
He projected low-to-mid single-digit iPhone growth and low-to-mid teens services growth, with consolidated gross margins improving as services expand. Apple's September-quarter gross margin guidance of 46–47% looked solid, even after factoring in $1.1 billion in tariff costs, bolstered by muted iPhone price hikes and continued strong services contribution.
Crockett said Apple's AI rollout still lags Samsung (OTC:SSNLF) and Google, limiting an AI-driven supercycle, but noted that users remain loyal to the ecosystem and will upgrade mainly for better cameras, longer battery life, and replacement needs.
Goldman Sachs: Ng valued the stock at 30 times Next 12 Months+1Y EPS, after the company's "Awe Dropping" event on Tuesday.
The analyst said Apple largely met expectations with its new iPhone 17 lineup, Apple Watch Series 11, Ultra 3, SE 3, and AirPods Pro 3. He highlighted the thinner iPhone 17 Air, larger display on the base model, upgraded A19-series chips, and improved front camera as drivers of sustained device demand.
He noted Apple's decision to eliminate the 128 GB storage tier across all iPhones and add a 2 TB option for the Pro Max, which effectively lifts average selling prices by about $100 on the iPhone 17 Pro and Air compared to prior models. Despite initial stock underperformance versus the S&P 500, Ng said the unchanged $799 entry price for the base iPhone 17 still supports installed base growth while maintaining premiumization at higher tiers.
The analyst emphasized that Apple's brand loyalty, ecosystem stickiness, and growing installed base lower churn and acquisition costs, giving the company visibility into long-term revenue durability. He projected that Services will drive most gross profit growth over the next five years, marking an inflection point that justifies Apple's premium multiple.
Ng argued that while cyclical headwinds like lengthening replacement cycles and weaker PC/tablet demand may weigh on product revenue growth, Apple's Services expansion and recurring-revenue model—"Apple-as-a-Service"—will offset those challenges and sustain premium valuation relative to peers.
AAPL Price Action: Apple shares were down 3.12% at $227.04 at the time of publication on Wednesday. The stock is trading within its 52-week range of $169.21 to $260.10, according to Benzinga Pro data.
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