Apple's Foldable iPhone Lifts Stock Price Amid Valuation Fears

Apple's stock price has been on an impressive run over the past year, rising around 40% as analysts on Wall Street predict further gains. The company recently traded at just above $320, with consensus targets suggesting modest upside to around $335.

However, top-rated analysts Wamsi Mohan and Tom Forte are more bullish, expecting Apple's shares to reach $370-$380 due to the company's expanding AI strategy under new CEO John Ternus. The key driver of this optimism is Apple's next iPhone cycle and its entry into the foldable smartphone market with the $1,999 iPhone Duo.

The Duo's high price point may seem daunting, but analysts believe it will actually boost average selling prices and support net sales growth of 9%-11%. Additionally, the ultra-high-end foldable is expected to increase gross margins near 47%-48%.