Goldman Sachs reiterated a Buy rating on AAPL stock and raised its price target ahead of Q3 FY26 earnings.
The analyst raised his price target for AAPL stock to $370 from $330, increasing his valuation multiple to reflect his growing optimism in the company’s iPhone replacement cycle and AI efforts.
Ng expects Apple to report better-than-expected Q3 FY26 earnings, driven by 17% revenue growth to $110.1 billion, which is at the high end of AAPL’s revenue growth guidance range of 14%-17%. He also expects iPhone revenue of $54.8 billion (23% growth), above the consensus estimate of $53.7 billion. Ng expects iPhone revenue growth to be driven by a 15% unit growth and a 7% rise in ASP (average selling price) on a premium mix shift.
Additionally, Ng projects 15% growth in Apple’s Services revenue, in line with the Street’s expectations. Within Apple’s Services business, Ng noted continued slowdown in App Store growth due to lower commission rates across markets such as China and Japan. Nonetheless, the analyst expects double-digit growth in the Services business, driven by strength in the services tied to Apple’s products (such as iCloud+ and AppleCare+).
Ng noted that Apple stock is outperforming the broader market since the beginning of the second quarter, as investors rotated away from traditional AI infrastructure stocks. He added that investor sentiment also improved as Apple gained market share despite industry-wide price hikes due to elevated memory costs. Furthermore, the progress in Apple Intelligence following
[the WWDC event]also helped address AI disruption concerns.Meanwhile, Ng expects Apple’s recently
[announced price hikes for Mac and iPad]to support earnings growth over the next few quarters, as he believes that the company’s user base is “relatively price inelastic given brand stickiness, U.S. carrier subsidies, and availability of recent low-cost product launches (iPhone 17e, MacBook Neo).”
Source: TipRanks NB: Ng is near the high range for both his price target and quarterly estimates.