Apple (AAPL) Stock Gets BofA Price Target Boost to $325 on Strong iPhone Projections

Key Takeaways

• Bank of America’s Wamsi Mohan increased Apple’s price target to $325 from $320 while maintaining a Buy rating
• Q2 FY26 revenue forecast of $113B and EPS of $2.00 surpass Wall Street’s expectations
• iPhone shipment estimates for Q2 increased to 60 million units, with Services revenue projected to climb 14% YoY
• Apple captured 21% of the worldwide smartphone market in Q1 2026, reflecting 5% annual growth
• Analyst consensus on AAPL remains Moderate Buy with a mean price target of $304.84

On Tuesday, Bank of America analyst Wamsi Mohan upgraded his price target for Apple (AAPL) from $320 to $325 while reaffirming his Buy recommendation. This adjustment arrives just before Apple reports its fiscal second quarter 2026 results on April 30 following the closing bell.

Apple Inc., AAPL

Shares of AAPL have declined approximately 5% since the start of the year. Trade tariff uncertainties, rising component expenses, and consumer spending anxieties have pressured the technology giant’s valuation.

According to Mohan, Wall Street analysts are setting the bar too low for Apple’s upcoming quarterly performance. His financial models point to Q2 revenue reaching $113 billion with earnings per share of $2.00—notably exceeding the Street’s consensus projections of $109 billion in revenue and $1.93 EPS.

For the March quarter, his iPhone shipment forecast stands at 60 million devices. This represents an upward revision from his previous estimate, bolstered by observations of sustained robust consumer appetite for the product line.

Services Segment Remains Growth Engine

The Services division is anticipated to deliver 14% year-over-year expansion in Q2, maintaining momentum comparable to the December quarter’s performance. This projection holds despite worldwide App Store revenue showing tepid growth—registering only 7% YoY advancement during the March period.

Evercore ISI highlighted this identical App Store deceleration, attributing it to renewed softness in the gaming category. Meanwhile, UBS, maintaining a Neutral stance, also referenced the 7% App Store metric while observing stagnant growth in the United States market.

Apple secured 21% of the global smartphone marketplace during Q1 2026, representing a 5% increase from the corresponding period last year. Robust iPhone 17 sales coupled with effective supply chain management across China, India, and Japan fueled this performance.

Future Growth Catalysts on the Horizon

Beyond the immediate earnings announcement, Mohan identified multiple forthcoming catalysts that could propel the stock. These include an anticipated new stock repurchase program, the Worldwide Developers Conference scheduled for June, and a foldable iPhone model expected to launch this autumn.

He also highlighted an upgraded Siri featuring integrated Gemini AI capabilities as a potential catalyst for device upgrades. However, Nikkei Asia has documented technical hurdles with the foldable iPhone development that might delay its market introduction.

Looking toward Q3 FY26, Mohan anticipates slight margin compression stemming from component pricing pressures and product portfolio shifts. His Q3 guidance calls for revenue of $106 billion and EPS of $1.82—both figures exceeding Street consensus of $103 billion revenue and $1.74 earnings per share.

BofA’s revenue growth projection of 18% YoY for Q2 surpasses Apple’s own official guidance range spanning 13% to 16%.

Analyst sentiment on AAPL currently reflects a Moderate Buy consensus—comprising 14 Buy ratings, 8 Hold ratings, and 1 Sell rating. The average analyst price target of $304.84 suggests approximately 18% potential appreciation from present trading levels.

Apple’s gross profit margin across the trailing twelve months registered 47.33%. BofA’s Q3 gross margin forecast of 47% to 48% closely aligns with this historical performance metric.

Bank of America also reconfirmed its Buy rating following the MacBook Neo product launch, which the firm anticipates will generate additional revenue streams and contribute positively to earnings per share.

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