Evercore ISI raises Apple stock price target on strong iPhone demand

Evercore ISI has raised its price target on Apple Inc. (NASDAQ:AAPL) stock to $380, up from an undisclosed prior level, while keeping an "Outperform" rating. The stock is currently trading at $337, close to its 52-week high of $344.57, and has experienced a 35% increase over the past six months. A recent annual survey of nearly 4,000 consumers shows strong demand for the upcoming iPhone 18 Pro and Pro Max models, with 53% of respondents planning to purchase an iPhone 18 Pro or Pro Max compared to 51% on average.

Notably, 32% of respondents specifically expect to buy the Pro Max model, up from 29% last year. The survey also revealed 14% of respondents anticipating to purchase the iPhone Duo, up from 9% for the iPhone Air the previous year. Evercore ISI anticipates that demand for the iPhone Duo could rise in the fourth quarter as the product launches in mid-October, allowing consumers to test it in person.

Drivers of iPhone purchases include consumers with older devices that need upgrading, cited by 67% of respondents compared to 48% last year. The average device age has decreased from 26.5 months last year to 23.5 months. Despite the positive survey results, the firm believes the stock is currently overvalued, placing Apple among other tech giants on its "Most Overvalued" list.

Apple Watch and AirPods purchase intentions have also increased, with 38% and 43% respectively, compared to 34% and 40% last year. Apple has faced other recent developments, such as Evercore ISI maintaining an Outperform rating with a $365 price target, BofA Securities keeping a Buy rating with a $370 target, and Citi's survey indicating more frequent smartphone upgrades, which could benefit Apple amid growing interest in AI-enabled devices.

Additionally, Apple recently settled an antitrust lawsuit related to AI technology integration and Kalshi Inc. plans to seek regulatory approval for single-stock perpetual futures targeting Apple shares.