Analyst Lifts Apple Target to $340 as 2027 Apple Intelligence Upside Offsets 6% Stock Drop
Updated
Updated · CNBC · Jul 31
Analyst Lifts Apple Target to $340 as 2027 Apple Intelligence Upside Offsets 6% Stock Drop
3 articles · Updated · CNBC · Jul 31
Summary
Apple beat June-quarter estimates with revenue up 16% to $109.42 billion and EPS up 29% to $2.02, prompting an analyst to raise the stock target to $340 from $300.
The higher target rests on a 2027 view that broader Apple Intelligence availability could lift iPhone value and customer willingness to pay, even as management highlighted next-generation Siri AI and on-device features.
Shares still fell nearly 6% after hours because September-quarter guidance trailed expectations: revenue growth of 9% to 11% implies about $112.7 billion, below the $114.84 billion consensus.
Memory costs remain the main overhang, with Tim Cook calling current pricing a "100-year flood" and warning supply constraints for iPhone, Mac and iPad will increase significantly in the current quarter.
Gross margin came in at 50.1%, but tariff refunds boosted both EPS and margins, leaving investors focused on whether Apple can sustain growth through higher component costs and possible further device price increases.