Bank of America Sticks to Bullish Apple Stock Forecast Amid Strong Earnings

Bank of America is sticking to its Buy rating for Apple stock and has maintained its price target of $380, citing tight iPhone supply, strong AI growth potential, and a recent earnings report that exceeded estimates. Analyst Wamsi Mohan built his updated forecast around the idea that Apple's guidance reflects what it can build, not what people want to buy.

The firm flagged that about $0.11 of Apple's fiscal third-quarter earnings came from a one-time tariff refund, which means earnings landed roughly in line with estimates once this was factored out. CEO Tim Cook said the issue is 'a demand forecast issue', where iPhone and Mac sales are doing remarkably better than expected.

Bank of America's five-part Apple stock forecast rests on lean channel inventory, resilient iPhone demand, easing component costs later this year, growing Services strength, and Apple's AI growth path through Siri and premium iCloud tiers. The firm also expects higher iPad and Mac prices to factor in.