Analyst Ratings February 2, 2026

BofA Upholds Buy on Apple, Keeps $325 Target as App Store and iPhone Sales Strengthen

Bank cites App Store momentum, robust iPhone results and AI optionality while analysts adjust ratings and price targets

By Ajmal Hussain AAPL
BofA Upholds Buy on Apple, Keeps $325 Target as App Store and iPhone Sales Strengthen
AAPL

BofA Securities reiterated a Buy rating on Apple with a $325 price target, pointing to App Store revenue growth, iPhone sales momentum and optionality from AI and new product cycles. The bank’s valuation is based on 32 times calendar 2027 estimated EPS of $10.10. Other broker moves include several $325 targets alongside mixed ratings across the sell-side.

Key Points

  • BofA reiterates Buy on Apple with a $325 price target based on 32x calendar 2027 estimated EPS of $10.10 - impacts technology and equity markets.
  • App Store revenue was $3.4 billion in the first 35 days of fiscal Q2 2026, up 6.3% year-over-year; downloads across iPhone and iPad rose 3.6% to 3.7 billion - impacts app ecosystem and consumer software monetization.
  • Apple reported fiscal Q1 2026 revenue of $143.8 billion and EPS of $2.84, driven by a 23% increase in iPhone sales and 13.9% growth in Services revenue - impacts consumer electronics and services sectors.

BofA Securities has reiterated a Buy rating on Apple Inc. with an unchanged price target of $325.00, according to a recent analyst note. Apple shares are trading at $264.94 and the company’s market capitalization stands at $3.88 trillion, while analyst price targets on the stock range from $205 to $350.

In its App Store analysis, BofA highlighted that revenue from the App Store reached $3.4 billion in the first 35 days of fiscal second quarter 2026, representing a 6.3% year-over-year increase. That growth rate is based on developer revenue data sourced from SensorTower.

The firm also reported that total downloads across iPhone and iPad platforms rose 3.6% year-over-year to 3.7 billion over the same period. Average dollars per download increased 2.6% year-over-year to $0.94.

Looking at the month of January specifically, BofA said global App Store revenue grew 7.0% year-over-year, outpacing download growth of 3.6%. The note pointed out that revenue growth in China remains soft, even as downloads in China rose by approximately 1% year-over-year.

BofA kept a positive stance on Apple, citing what it described as "strong capital returns, eventually winner at AI at the edge & optionality from new products/markets." The bank’s $325 price objective is derived from a multiple of 32 times calendar 2027 estimated earnings per share of $10.10.

The broker commentary follows Apple’s fiscal first quarter 2026 results, in which the company reported revenue of $143.8 billion, beating analysts’ consensus of $138.4 billion. Earnings per share were $2.84, above the expected $2.67. These results were underpinned by a 23% increase in iPhone sales and a 13.9% rise in Services revenue.

Other sell-side moves referenced in the note showed mixed positioning. Evercore ISI removed Apple from its tactical outperform list. Bernstein SocGen reiterated an Outperform rating and set a $325 price target, noting first quarter iPhone revenue of $85.3 billion. DA Davidson held a Neutral rating with a $270 price target while acknowledging the significant acceleration in iPhone sales. JPMorgan raised its price target to $325 and maintained an Overweight rating, citing strong margins. TD Cowen reiterated a $325 price target and emphasized potential growth tied to AI improvements in Siri and the upcoming iPhone 17 cycle.


Context and implications

For investors and market participants, the BofA note frames Apple’s near-term outlook around App Store monetization trends, device demand and capital return policies. The appraisal of AI at the edge and product optionality signals a view that new technology-enabled features and future product cycles could be important contributors to valuation upside. The range of analyst targets and the removal from a tactical outperform list illustrate differing short-term perspectives across the sell-side.

Disclosure

Risks

  • China App Store revenue growth remains soft despite roughly 1% year-over-year download growth in China - risk to regional revenue recovery and services monetization affecting the technology and consumer markets.
  • Analyst consensus on price targets varies widely from $205 to $350, and Evercore ISI removed Apple from its tactical outperform list - introduces near-term sentiment divergence across equity analysts affecting investor positioning.
  • Reliance on future optionality from AI at the edge and new product cycles creates execution risk if product developments or AI integration do not meet expectations - relevant to the AI, device hardware and services markets.

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