Overview
BofA Securities has reiterated its Buy rating on Apple Inc. stock and placed a $325.00 price target on the shares, according to a research note released on Friday. That target is below the analyst high of $350 but well above Apple’s prevailing share price of $258.28.
What the firm cites
The research note lists several factors underpinning BofA’s bullish stance as the company heads into 2026. Central to the view is stronger-than-expected iPhone upgrade activity globally, including in China, with record numbers of customers replacing older devices. BofA links this upgrade cycle to recent top-line gains; Apple has recorded 6.43% revenue growth over the last twelve months, with total revenue of $416.16 billion.
The note also points to improving gross margins despite commodity and memory cost pressures. Data cited in the note shows Apple’s gross profit margin at 46.91%, a metric BofA uses to support its assessment of the company’s profitability profile. The firm noted that Apple is trading above a Fair Value estimate based on the same dataset.
Product and services backdrop
BofA highlighted upcoming product developments that it views as potential growth catalysts. The firm expects an AI-enabled Siri to be available in 2026 and anticipates a foldable iPhone in September 2026. The research note also observed Apple’s record installed base of 2.5 billion devices, which BofA expects to continue driving double-digit growth in the Services segment. The enlarged installed base underpins the firm’s view of recurring-revenue expansion and optionality from new products and markets.
Multi-year outlook and financial health
In an October 29 research note, BofA set out its five-year expectations for Apple’s revenue and earnings power, projecting earnings per share growth in the mid-teens through calendar year 2030. The firm’s positive stance is supported by anticipated strong capital returns, the potential for Apple to be an "eventual winner on AI at the edge," and product/market optionality tied to new device categories.
Supporting the financial-strength view, the firm cites a top-tier Piotroski Score of 9 for Apple, indicating robust underlying fundamentals. At the same time, Apple is trading at a relatively high price-to-earnings ratio of 34.65 versus near-term earnings growth, a valuation the research note flags as notable.
Recent results and external views
Apple’s fiscal first-quarter results for 2026 were included in the note as confirmation of recent momentum. Quarterly revenue reached $143.8 billion, up 16% year-over-year, and earnings per share were reported at $2.84, exceeding a market forecast of $2.67.
The research note also references a parallel view from another major firm: Morgan Stanley has reiterated an Overweight rating on Apple with a $315.00 price target. That firm, while positive, noted concerns about memory price inflation and its potential impact on gross margins.
On product timing, the note reports that Apple is shifting focus toward premium iPhone models for a 2026 launch window. The company plans to prioritize three high-end models, including a foldable version, and is expected to defer the standard model until 2027.
Conclusion
BofA’s reassessment combines current upgrade dynamics, an expanded installed base supporting services growth, margin resilience, and upcoming device innovations to justify a $325 target and a reiterated Buy rating. The firm’s multi-year projection for mid-teens EPS growth through 2030, along with a perfect Piotroski Score and substantial market capitalization, form the backbone of its bullish case. At the same time, valuation metrics and component-cost pressures are explicitly noted as considerations in the overall assessment.