BofA Reaffirms Buy on Apple Ahead of iPhone 18 Launch Event
Bank of America Securities has reaffirmed its Buy rating on Apple Inc. ahead of the tech giant's highly anticipated iPhone 18 launch event, despite some analysts cautioning about potential negative price catalysts.
The firm predicts that Apple will unveil three new iPhones: the iPhone 18 Pro and Pro Max models, which are expected to retain their current display sizes and run on the A20 Pro processor; and the iPhone Ultra, a foldable phone featuring dual displays and advanced camera capabilities. The Pro models may see price increases of around $200 compared to their predecessors.
The iPhone Ultra is also expected to have 12GB RAM, 256/512/1TB/2TB storage options, and run on the A20 Pro chip. BofA Securities' analysis suggests that Apple's stock appears overvalued relative to its Fair Value, with a market cap of $4.67 trillion and a P/E ratio of 36.92.
Other potential product releases include the Apple Watch Series 12 or Ultra 4 and AirPods 5, as well as possible updates to smart-home products like the Apple TV 4K and HomePod mini. The firm notes that App Store revenues in the fourth quarter of fiscal 2026 showed modest year-over-year growth, but some analysts have expressed concerns about slowing revenue growth.
BofA Securities maintains a price target of $380 for Apple stock, while KeyBanc has reiterated an Underweight rating and Citi predicts that the iPhone Ultra will start at over $2,000. DA Davidson has provided a Neutral rating with a $270 price target, highlighting Apple's improving position in AI and the significance of the upcoming foldable iPhone Ultra.