Apple's iPhone Duo Launch Spurs Buy Rating from Melius Research

Apple's latest product launch has garnered significant attention from analysts and investors. Melius Research reiterated its buy rating on Apple Inc. (AAPL) with a $370 price target following the release of the iPhone Duo. This implies a potential upside of 17% from the current stock price of $315.34, although the firm notes that the stock is currently overvalued relative to its Fair Value.

The iPhone Duo features a thin design and large screen, along with a camera system that allows photo subjects to see themselves on the back of the device while being photographed. Melius Research believes Apple could sell 15 million Duo units in fiscal year 2027 if supply allows, which would drive iPhone revenue growth of 20% over the next two years. This is higher than the current consensus estimate of 9% growth for fiscal 2027.

Other analysts have responded to the launch with varied opinions on Apple's stock. Evercore ISI reiterated an Outperform rating with a price target of $365, while Jefferies maintained an Underperform rating due to concerns over Apple's pricing strategy for the Duo. Lynx Equity downgraded Apple's stock citing supply chain challenges that could affect the company's fiscal 2027 performance.

BofA Securities reiterated a Buy rating with a price target of $380, expecting significant advancements in the new iPhone models, including enhanced processors and camera features. HSBC also maintained a Buy rating based on a favorable price-to-earnings ratio.