BofA on Apple (AAPL): 'Bullish setup into earnings with upcoming catalysts later in the year'

BofA Securities analyst Wamsi Mohan reiterated a Buy rating and $325.00 price target on Apple (NASDAQ: AAPL).

The analyst comments "As we head into F1Q26 (Dec Q) earnings after market close on Thur Jan 29, we see upside to ST ests given continued strong sales of iPhone & double-digit growth in Services revs. Upcoming catalysts include launch of a foldable iPhone in the fall & launch of an enhanced Siri with integration with Gemini AI which can drive higher upgrades. The stock has underperformed to start 2026 as investor sentiment is fairly negative given uncertain impact from higher memory costs. We see iPhone demand remaining strong (build plans likely revised upwards), and Services revs continuing double-digit y/y growth despite weaker App store sales in China. Our F1Q rev/EPS are $140bn/$2.69 vs. Street $138bn/$2.67 (we model rev +13% y/y vs guidance 10-12% y/y). We model GM of 47.5% (at mid-pt of guide) but see sequentially higher margins in F2Q (Mar Q) on higher mix of Services. We expect Apple to guide F2Q rev growth of 10% y/y and GM range of 47.5-48.5%. We model F2Q rev/EPS of $105bn/$1.82 vs. Street $105bn/$1.85. Apple remains underweight in investor portfolios which we see reversing this year. Reit Buy."

For an analyst ratings summary and ratings history on Apple click here. For more ratings news on Apple click here.

Shares of Apple closed at $259.37 yesterday.

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