Five-star BofA Securities analyst Wamsi Mohan maintained his Buy rating on tech giant Apple (AAPL) with a price target of $265. This rating is based on the expectations of a strong iPhone upgrade cycle in 2025 and 2026, which would be driven by the need for the latest hardware in order to support AI features. Additionally, Mohan anticipates higher growth in Services revenue and higher margins from Apple’s internally developed silicon.
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However, the recent 10% tariff that was slapped on Chinese imports has raised concerns about Apple’s supply chain. Indeed, shares of Apple are down in today’s trading because of this. Nevertheless, Mohan notes that Apple may be able to mitigate the impact of tariffs by manufacturing more products in countries like India, Vietnam, and Malaysia. In fact, Apple can already manufacture most iPhone models in India, which could help reduce its reliance on Chinese imports.
Mohan also analyzed the potential earnings impact of tariffs on Apple and concluded that it would be limited. He estimates that if Apple maintains existing pricing in the U.S., the EPS impact would be -$0.12 if 50% of devices are still sourced from China. However, if Apple raises prices, the impact would be reduced to -$0.07. As a result, Mohan’s fiscal 2025 revenue and EPS estimates for Apple remain at $411 billion and $7.30, respectively.
Is Apple a Buy or Sell Right Now?
Overall, analysts have a Moderate Buy consensus rating on AAPL stock based on 18 Buys, 10 Holds, and four Sells assigned in the past three months, as indicated by the graphic below. After a 21% rally in its share price over the past year, the average AAPL price target of $251.60 per share implies 11% upside potential.
