Goldman Sachs has increased its AAPL price target to $370, with the firm expecting good third-quarter results, and a faithful audience keeping purchase volumes up even after hardware price increases.
Ahead of Apple's quarterly financial results release and call with analysts on Thursday, Goldman Sachs has raised its bar for Apple to reach.
In a note to investors seen by AppleInsider, issued on July 27, Goldman Sachs has increased the price target from $340 to $370.
For the Q3 period, Goldman Sachs predicts revenue of $110.1 billion, representing 17% year-over-year growth. Revenue from iPhone is expected to hit $54.8 billion, up 23% year-over-year, thanks to a 7% annual growth in the average selling price and overall growth of the unit as a whole.
The analysts believe that iPad will see minor 4% annual growth to $6.83 billion, Mac will grow 15% to $9.28 billion, and Wearables, Home, and Accessories will get to $7.79 billion, up 5% year over year.
Apple is outperforming since the second quarter in a number of factors, including investors rotating away from AI infrastructure trades. There's also the promising progress in Apple Intelligence following WWDC, which has addressed concerns in AI disruption.
But it is Product — meaning hardware — that is Apple's biggest strength. While the stock reacted negatively to the price increases caused by the memory crisis, Apple is still gaining in market share.
Thanks to a customer base that is "relatively price inelastic given brand stickiness," Apple should weather the storm and benefit more in the future. The low-cost product launches of the iPhone 17e and MacBook Neo also help it in consumer eyes.
While the App Store continues to decelerate in Goldman Sachs' eyes, product-related Services drivers like iCloud+ and AppleCare+ will still contribute to the unit's growth. In Goldman Sachs' table, that means a 15% year-over-year increase to $31.4 billion.
Risks cited by the firm are the ones you'd expect to see. Goldman Sachs sees potential dangers in market softening, supply chain disruption, competition from other vendors, and the ever-present regulatory risks both in the US and internationally.
This is the second target price increase in 2026 from Goldman Sachs. The first was in January, hiking the target to $330. The more recent one was in May, with an increase to $340.
