Apple Stock Target Jumps 54% to $400 as Analyst Bets on Foldable Device Success
A recent upgrade of Apple Inc.'s (NASDAQ:AAPL) stock target by Rothschild Redburn analyst James Cordwell has drawn attention from Wall Street, with the price target jumping 54% to $400. This rare move is based on two specific catalysts: the expected strong adoption and premium pricing of the iPhone Ultra foldable device, and Apple's strategic pivot towards open-source AI models.
Cordwell projected iPhone sales growing at a 12% compound annual rate over five years, with estimates 3-14% above Wall Street consensus for fiscal 2026 through 2030. He also estimated overall Apple earnings running 18% above the Street's fiscal 2030 forecast. The upgrade marked a shift from his previous Neutral stance, where he had kept a $260 target that implied downside.
The iPhone Ultra is expected to launch in September 2026 alongside the iPhone 18 Pro series at a starting price near $2,199, with analysts projecting an average selling price of $2,500. The device features a 7.8-inch internal display, an A20 chip, and a book-style foldable design.
Cordwell's thesis leans heavily on Apple's Services division, which has gross margins running approximately 75%, more than double the 37% margin on hardware sales. Services revenue grows roughly three times faster than product revenue, making it central to the $400 target.