Apple Dangles, JPMorgan Bites

Apple $AAPL ( ▲ 0.47% ) got a fresh vote of confidence from JPMorgan $JPM ( ▼ 0.17% ) ahead of earnings.

The bank reiterated its Overweight rating and raised its price target to $315 from $305, citing stronger-than-expected iPhone demand and lower operating expenses.

JPMorgan said Apple’s recent underperformance relative to the broader market has created a more attractive entry point heading into its fiscal first-quarter earnings report later this week.

Analyst Samik Chatterjee believes robust demand for the iPhone 17 will drive an earnings and revenue beat.

He also expects operating expenses to come in below guidance, helping offset concerns around higher memory costs.

Those memory-related margin pressures have weighed on investor sentiment, alongside worries about App Store Services growth.

But JPMorgan argues those fears have overshadowed stronger underlying hardware trends.

Chatterjee noted that Apple is trading at about 30x next-twelve-month earnings, below the peak multiple typically seen ahead of major iPhone cycles.

That setup, combined with modest upside to near-term earnings and outlook, underpins the higher target.

While Services growth may lag guidance in the near term, JPMorgan sees multiple longer-term levers beyond the App Store.

With earnings days away, the bank says the risk-reward has tilted firmly back in Apple’s favor.