Apple (AAPL) already has plenty of optimism reflected in its share price, but one Wall Street firm thinks the company’s latest iPhone cycle could give investors another reason to stay bullish.
Evercore ISI boosted its Apple price target to $380 and maintained an Outperform rating, Investing.com reported. The call comes after the firm’s annual poll of almost 4,000 customers found stronger-than-expected purchase intent for Apple’s newest smartphones.
Apple’s highest-end luxury products were remarkable. Approximately 53% of those expecting to buy an iPhone said they anticipate getting an iPhone 18 Pro or Pro Max, compared with an average of 51% who planned to buy premium models last year, according to MacRumors.
An equally straightforward force may drive demand: People need new phones.
Some 67% of respondents said they bought an outdated iPhone to upgrade, compared with 48% last year.
Apple stock is trading at roughly $337, near its 52-week high of $344.57, and up nearly 35% in the past six months, TradingView noted. Evercore’s $380 target would suggest about 13% upside from that level.
For Apple investors, the survey suggests the next leg of the company’s hardware cycle may depend on more than one product.
Evercore sees strong demand for Apple’s premium iPhones
Evercore’s analysis revealed a number of positive indicators for Apple’s priciest iPhones.
The firm found that more than half of respondents intending to purchase an iPhone expect to buy the high-end iPhone 18 Pro or Pro Max, MacRumors confirmed. The Pro Max accounted for 32% of purchase intentions, compared with 29% planning premium purchases last year.
Premium demand is especially crucial for Apple, since it can boost revenue from its iPhone business without needing to sell a proportional increase in total devices. Apple’s product mix may gain in value, even when smartphone sales are tepid, as long as buyers choose a more costly model.
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Evercore also noted lengthier average delivery times for the iPhone 18 Pro and Pro Max after preorders began, as Investing.com noted, which might be another sign of high early demand.
Bank of America has been equally enthusiastic, maintaining its Buy rating and $370 price target, according to GuruFocus. The company pointed to greater incentives from carriers on iPhone sales that might help counteract Apple’s higher prices for customers.
But Evercore’s poll hinted at another potentially significant source of demand that has nothing to do with new technologies.
About 67% of respondents said their existing iPhone being old and in need of an upgrade influenced their purchase decision, up sharply from 48% last year, Investing.com reported.
The average age of respondents’ gadgets was 23.5 months, down from 26.5 months last year.
That’s a promising sign for Apple’s current cycle, since replacement demand might piggyback on excitement over its newer goods.
Apple’s iPhone Duo gives Evercore another reason for optimism
Apple’s latest device, the iPhone Duo, might add another layer to the upgrading cycle.
Last year, Evercore survey results showed that 9% intended to buy the iPhone Air, while 14% of respondents expected to acquire the iPhone Duo, AppleInsider confirmed.
Interest might rise further into the fourth quarter once the Duo launches in mid-October and buyers get the chance to experience the device in person, Evercore added, according to Investing.com.
That’s crucial because a new device may act differently from Apple’s existing iPhone models.
The consumer knows roughly what they will get with a Pro or Pro Max gadget. Potential purchasers may need to see a less familiar product in shops to judge whether its appearance and features are worth an upgrade.
Early poll results show Apple may have space to create demand after launch, rather than depending on preorders alone.
The figures have an essential constraint, too. Buying intentions don’t always lead to buying.
Evercore’s poll evaluates what buyers say they anticipate purchasing, not Apple’s final unit sales or revenue. How much of the excitement converts into financial success will be a better measure of actual sales outcomes.
Currently, the premium side of Apple is the greater part of the narrative. More than half of the respondents intending to buy an iPhone say they’re mulling a Pro or Pro Max model.
But if the Duo does acquire any traction once it hits shops, Apple might have another demand source in addition to an already robust premium upgrade cycle.
TIMOTHY A. CLARY / Getty Images
Apple’s latest upgrade cycle reaches beyond the iPhone
Evercore’s bullish findings weren’t limited to Apple’s smartphones.
Purchase intentions for the Apple Watch reached 38%, compared with 34% last year, with consumer interest skewing toward the Series 12.
AirPods buying intentions also solidified to 43%, up from 40%.
Those gains aren’t as spectacular as some of the iPhone survey findings, but they are significant because Apple’s gadgets are part of a much larger ecosystem.
An iPhone client may be a customer of Apple Watch and AirPods as well. Those devices may further enhance the customer’s engagement with Apple’s software and services, providing the business a new opportunity to generate revenue beyond the initial smartphone purchase.
That means a stronger iPhone replacement cycle might help several divisions of Apple’s hardware business.
The Evercore survey also implies that Apple doesn’t expect a single new product to generate customer enthusiasm. Evercore reported improved purchase intentions across the iPhone, Apple Watch, and AirPods categories.
Citi’s consumer research has also shown that consumers are upgrading their smartphones more often, Investing.com noted, which might provide another positive background for Apple as demand for artificial intelligence-enabled devices rises.
Still, polls are leading indications, not sales reports.
Consumers could change their minds, postpone purchases, or buy cheaper versions. For Apple to have any financial impact, the strongest poll findings must convert to actual purchases.
That makes upcoming sales data from Apple very relevant to investors. The issue isn’t just whether consumers enjoy the company’s new offerings. It’s whether enough of them are willing to pay for it.
Evercore’s Apple price target raises the stakes
Evercore’s $380 price target on Apple is noteworthy, as the stock has already enjoyed a strong run.
Shares had recently traded at $337, close to their 52-week high of $344.57, after rising 35% in six months.
The aim suggests about 13% further upside to $337 for Evercore’s target.
But the surge in Apple adds another layer to the tale.
Strong expectations might also make it harder for a corporation to surprise investors. As stocks go higher, investors may want more and more proof that profits, sales, and product demand can support the higher value.
According to Evercore’s poll, there are many reasons Apple might meet the challenge.
Respondents seem to be high on premium iPhone demand. More people say they are upgrading because their phones are aging. The buying intentions for the iPhone duo are higher than last year, with purchase intentions for Apple Watch and AirPods also increasing.
None of those indications guarantees a better sales cycle.
Purchase-intention polls sometimes do not accurately reflect actual purchasing behavior, and the Duo has not yet been widely tested by customers in stores. What customers say they intend to buy right now will matter a lot less than ultimate financial outcomes from Apple.
Evercore’s call, however, isn’t only about the hoopla around a new iPhone launch.
The firm’s study indicates many possible demand drivers at once: premium device sales, replacement demand, interest in a new iPhone model, and increasing plans for other Apple goods.
Those expectations present a higher hurdle, with Apple shares already at their 52-week high.
Evercore has a $380 target, indicating the business believes Apple can break through.
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