TD Cowen Raises Price Target#
TD Cowen has increased its price target for Apple Inc. (NASDAQ:AAPL) from $325 to $335 while keeping a Buy rating. Currently, Apple’s stock is trading at $271.35, with a price-to-earnings (P/E) ratio of 34.79. This ratio indicates how much investors are willing to pay for each dollar of earnings, and some analysts believe the stock is overvalued compared to its fair value estimate.
Strong Growth Guidance#
The firm highlighted Apple's guidance for the upcoming June quarter, predicting a growth rate of 14% to 17% year-over-year. This forecast surpasses the market's expectations of 10% growth and reflects robust demand for Apple's iPhone and Mac products. Over the past year, Apple’s revenue has increased by 10%, and analysts expect a 12% revenue growth for fiscal 2026.
Supply Chain Concerns#
While TD Cowen noted potential supply constraints related to system-on-chip components, they expressed greater concern about rising memory costs, which could impact profit margins in the second half of 2026. They predict that prices for DRAM and NAND memory chips could rise by about 180% by mid-2026 compared to third-quarter 2025 levels.
Share Buyback and Financial Performance#
Apple has also announced a substantial $100 billion buyback program, increasing its total repurchase capacity to $160 billion. With a market capitalization of $3.98 trillion, Apple remains a significant player in the stock market. Recently, Apple reported impressive financial results, with revenue reaching $111.2 billion and earnings per share of $2.01, exceeding analysts' expectations. The company saw a 22% year-over-year increase in iPhone revenue, although growth was slightly limited by supply issues in advanced semiconductors. Various analysts have responded to these results with updated price targets, reflecting the strong performance across Apple's product lines.