Rosenblatt raised its Apple (NASDAQ: AAPL) stock price target from $300 to $303 on September 1, while maintaining a ‘Neutral’ rating ahead of the likely foldable iPhone launch next week.
According to the research note, the firm believes Apple can navigate supply-chain pressures thanks to higher prices, premium products, and strong product innovation that justify the valuation.
With Tim Cook stepping aside as CEO and allowing John Ternus to take his place, analyst Barton Crockett expects ‘a September to remember,’ even though the newly adjusted target still implies approximately 4.37% downside from the current levels.
“As Tim Cook stepped aside as CEO on Aug. 31 at the age of 65, and John Ternus steps up today as CEO, we update Apple estimates for what promises to be a September to remember, with a high-profile iPhone rollout slated for Sept. 9… We assume successful navigation of supply chain constraints – with price hikes and premium priced products muting margin pressures – and tweak up estimates, moving our price target up $3 to $303,” Crockett wrote.
Apple stock will be successful, Rosenblatt says
As mentioned, the updated outlook comes just one day after Tim Cook stepped aside as Apple’s CEO at age 65. Rosenblatt thus sees the leadership transition and an upcoming high-profile iPhone rollout as an early test of Ternus’ ability to drive product innovation and support Apple’s premium valuation.
Being generally bullish, the firm slightly increased its estimates ahead of the iPhone fold launch, pointing to price increases and premium-priced products as factors that could help offset expected margin pressure.
Notably, Rosenblatt highlighted supply-chain constraints as a key risk, while warning that Apple’s valuation leaves limited room for execution setbacks. Crockett said the stock trades at a price-to-earnings (P/E) multiple in the 30s, assuming the company successfully executes on its plans.
The $303 price target itself is based on a 31x multiple of projected fiscal 2027 earnings per share (EPS), which the analyst described as a healthy premium relative to Apple’s expected low-double-digit EPS growth rate.
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