Rothschild & Co Redburn has upgraded Apple (NASDAQ: AAPL) to ‘Buy’ from ‘Neutral’ and raised its Apple stock price target to $400 from $260.
The upgrade, issued by analyst Timm Schulze-Melander, is based on the technology giant’s planned entry into the foldable smartphone market and a potential shift in its artificial intelligence strategy.
The new target aligns with the broader Wall Street outlook, as highlighted by TipRanks. According to data from 30 analysts, the average 12-month Apple stock forecast stands at $338.99, implying upside of about 10.8% from the current share price of $305.93.
The highest target on Wall Street is now $400, while the lowest sits at $245.
Apple’s bullish case
Redburn’s bullish stance is largely driven by expectations for Apple’s first foldable iPhone, which is widely anticipated to launch in September.
The firm forecasts sales of 14 million foldable iPhone Ultra units in fiscal 2027. Of those, only about 4 million units are expected to come at the expense of existing iPhone models, suggesting the device could generate meaningful incremental demand.
Analysts estimate the foldable model will carry a price tag of $2,199, representing an 83% premium to the iPhone 17 Pro Max. As a result, the broker expects the new device to increase average iPhone selling prices by 11% by June 2027.
Schulze-Melander also projects iPhone revenue growth above consensus estimates between fiscal 2026 and 2030, supporting a more optimistic long-term Apple stock outlook.
The analyst also highlighted Apple’s evolving artificial intelligence strategy as a potential driver of future growth.
Apple Intelligence has faced criticism since launch, with several key features relying on a customized version of Google’s Gemini model.
Apple reportedly pays Google around $1 billion annually for access to the technology while continuing to receive billions in payments tied to search placement agreements.
Redburn believes Apple could improve its competitive position by incorporating open-source AI models, potentially reducing its reliance on Google. The analysts pointed to Nvidia’s Nemotron models as a viable alternative capable of delivering performance comparable to leading proprietary systems.
Such a move could strengthen Apple’s AI ecosystem while giving the company greater control over future product development.
Risks facing Apple
Despite the upgraded Apple analyst rating, Redburn noted several risks that could affect its bullish case.
Potential delays to the foldable iPhone launch, manufacturing challenges related to display creases and hinge durability, and continued dependence on third-party AI models could all weigh on execution.
Consumer adoption also remains uncertain. In this case, while earlier surveys suggested limited interest in foldable smartphones, more recent research indicates that Apple’s entry into the category could improve consumer confidence and accelerate adoption.
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