Key Highlights
- Bank of America’s Wamsi Mohan increased Apple’s price target to $325 from $320 while maintaining a Buy rating
- Q2 FY26 revenue forecast stands at $113B with EPS projection of $2.00, surpassing Wall Street expectations
- iPhone shipment estimate for Q2 increased to 60 million units, with Services segment anticipated to grow 14% YoY
- Apple captured 21% of worldwide smartphone market share in Q1 2026, reflecting a 5% annual increase
- Consensus rating on AAPL remains Moderate Buy with an average analyst price target of $304.84
Wamsi Mohan, a Bank of America analyst, has lifted his price objective for Apple (AAPL) to $325 from the previous $320 mark on Tuesday, while reaffirming his Buy recommendation. This adjustment arrives just ahead of Apple’s fiscal second quarter 2026 results, scheduled for release after trading hours on April 30.
AAPL shares have declined approximately 5% since the start of the year. The stock has faced pressure from tariff uncertainties, elevated input expenses, and questions about consumer spending patterns.
Mohan contends that Wall Street’s current projections are too conservative for Apple’s upcoming quarterly report. His model anticipates Q2 revenue reaching $113 billion with earnings per share of $2.00 — compared to consensus estimates of $109 billion in revenue and $1.93 in EPS.
His projection for iPhone units during the March quarter stands at 60 million devices. This represents an upward revision from his earlier estimate, backed by observations of sustained robust demand.
Services Segment Remains Growth Engine
The Services division is projected to post 14% year-over-year growth in Q2, maintaining momentum similar to the December quarter. This forecast holds despite global App Store sales showing modest growth of just 7% YoY during the March period.
Evercore ISI highlighted the same App Store deceleration, attributing it to renewed softness in gaming categories. UBS, which maintains a Neutral stance, also referenced the 7% App Store growth figure while observing stagnant performance in the U.S. market.
Apple secured 21% of global smartphone shipments in Q1 2026, marking a 5% improvement versus the previous year. Robust iPhone 17 adoption combined with effective supply chain management across China, India, and Japan contributed to this performance.
Future Catalysts on the Horizon
Mohan identified several potential catalysts beyond the immediate earnings announcement. These include an anticipated new share repurchase program, the annual WWDC developer conference in June, and a foldable iPhone model expected to launch this fall.
He also highlighted an upgraded Siri incorporating integrated Gemini AI as a possible catalyst for device upgrades. However, Nikkei Asia has documented technical challenges with the foldable iPhone that may delay its market introduction.
For Q3 FY26, Mohan anticipates modest margin pressure stemming from component pricing and product mix dynamics. His Q3 guidance calls for revenue of $106 billion and EPS of $1.82 — still exceeding consensus projections of $103 billion and $1.74.
BofA’s revenue growth forecast of 18% YoY for Q2 exceeds Apple’s official guidance range of 13% to 16%.
The Street’s overall rating on AAPL stands at Moderate Buy — consisting of 14 Buy ratings, 8 Hold ratings, and 1 Sell rating. The mean price target of $304.84 suggests approximately 18% upside potential from present trading levels.
Apple’s trailing twelve-month gross margin registered at 47.33%. BofA’s Q3 gross margin forecast of 47% to 48% remains consistent with that benchmark.
Bank of America also reaffirmed its Buy rating following the MacBook Neo introduction, which the firm believes will contribute incremental revenue and deliver a favorable EPS impact.
