Rosenblatt Securities on Friday increased its price target for Apple Inc. to $267 from $250, while leaving its rating on the stock at Neutral. The firm’s target change follows Apple’s fiscal first-quarter 2026 results, which Rosenblatt says showed iPhone demand outstripping both company guidance and factory capacity.
Market context and company metrics
At the time Rosenblatt published its note, Apple shares were trading around $258.28 and the company carried a market capitalization of $3.8 trillion. Data from InvestingPro cited by analysts in the note indicated a Piotroski Score of 9 for Apple, a measure that the report interpreted as signaling strong financial fundamentals.
Revenue and earnings drivers
Apple reported fiscal first-quarter 2026 revenue of $143.76 billion and diluted earnings per share of $2.84, figures that exceeded the FactSet consensus of $138.39 billion in revenue and $2.67 in EPS. The company’s total sales rose 16% year-over-year, paced primarily by a 23% increase in iPhone sales and a 14% increase in Services revenue. iPhone revenue totaled $85.3 billion for the quarter, and Apple logged a 38% year-over-year sales increase in China, a region Rosenblatt highlighted as contributing meaningfully to iPhone strength.
Margins, pricing power and supply chain context
Rosenblatt noted improvements in both consolidated and product gross margins during the quarter, despite lingering supply chain challenges. Apple’s gross profit margin was reported at 46.91%, a level the firm interpreted as evidence of sustained pricing power and operational efficiency. The note also pointed to a trailing 12-month revenue growth rate of 6.43%, with total revenue reaching $416.16 billion.
Valuation and analyst methodology
The 7% increase in Rosenblatt’s price target reflects the firm’s raised earnings per share assumptions and the application of a 31x price-to-earnings multiple. Rosenblatt nevertheless retained a Neutral rating, citing Apple’s current P/E ratio near 30x relative to expected EPS growth in the low double-digit to mid-teens range. InvestingPro data referenced in the note showed Apple trading at a P/E of 34.65, which Rosenblatt described as appearing high when compared to its Fair Value assessment. The note summarized the range of analyst price targets at between $205 and $350 and referenced Apple’s Pro Research Report among more than 1,400 U.S. equities covered on InvestingPro.
Responses from other firms
In the wake of Apple’s quarterly beat, several investment firms updated their own outlooks. Goldman Sachs raised its price target to $330 while keeping a Buy rating. BofA Securities reiterated a Buy rating with a $325 target. Wedbush maintained an Outperform rating and highlighted the pronounced growth in iPhone sales. Morgan Stanley kept an Overweight rating but cautioned that memory price inflation could create headwinds for future gross margins, a factor that could affect suppliers and component markets linked to the smartphone supply chain.
Analyst expectations for the iPhone cycle
Rosenblatt expects the current iPhone product cycle to remain strong through the year before eventually normalizing, drawing on historical patterns from prior cycles. While that outlook supported a modest upward revision to Rosenblatt’s target, the firm’s Neutral stance reflected its view that the stock’s valuation relative to expected earnings growth limits upside from current levels.
Overall, Rosenblatt’s update frames Apple as a company producing solid top-line growth, robust margins and resilient demand for flagship products, while also highlighting valuation and margin volatility as key considerations for investors.