Apple (NASDAQ: AAPL) received a major boost from Bank of America, which raised its price target for the tech giant to $320 from $270, marking a new high among Wall Street forecasts.
The bank also reiterated its ‘Buy’ rating on the stock, citing strong fundamentals and promising growth prospects. The new target implies a potential rally of about 19% from Apple’s last closing price of $269.
Analyst Wamsi Mohan highlighted Apple’s robust ecosystem, brand strength, and large installed customer base as key competitive advantages. The bank projected the company’s performance over the next five years, factoring in both product and services revenues, as well as potential new offerings.
Mohan also emphasized the growing impact of artificial intelligence (AI) on Apple’s business, pointing to opportunities in AI-augmented eyewear, in-house AI robots, and smart home devices, while acknowledging possible disruption to traditional search-related revenue streams.
BofA’s outlook highlighted Apple’s strong capital returns and strategic positioning in AI at the edge. For fiscal year 2025, revenue and earnings per share are projected at $418 billion and $7.41, respectively. The $320 price target is based on 32 times the projected 2027 EPS of $9.88, up from 32 times the 2026 EPS of $8.40.
Apple stocks sets new record highs
The bullish outlook comes as Apple shares closed slightly higher on Tuesday, setting another record after briefly surpassing a $4 trillion market capitalization before easing below the mark. The milestone places Apple alongside Nvidia and Microsoft in the elite valuation club.
Momentum also followed data from Counterpoint Research, showing that iPhone 17 sales outpaced last year’s iPhone 16 lineup by 14% in the first 10 days of availability across the U.S. and China. Strong demand for the base iPhone 17 and 17 Pro models led the surge, while the new iPhone Air slightly outperformed the iPhone Plus it replaced.
Despite reports of moderating lead times in recent weeks, iPhone demand remains central to Apple’s growth, with the device contributing more than half of its $391 billion in total revenue for 2024.
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