Evercore ISI has raised its price target for Apple Inc. to $380, up from an undisclosed prior level, while maintaining an Outperform rating. This new target suggests roughly 11% upside from the current stock price of $342.37, with shares trading near their 52-week high of $355.38. Despite the bullish outlook, InvestingPro analysis indicates that Apple's stock is currently overvalued, placing it on the platform’s Most Overvalued list.
The firm highlighted the potential of Siri AI as a key driver for this optimism. The beta version of Siri AI, currently available in select geographies, offers limited functionality compared to competitors like Meta’s Muse, Gemini Spark, and Instinct. Evercore ISI estimates that there are approximately 550 million to 560 million compatible users across Apple’s 1.4 billion active iPhone base, with about 60% of U.S. users owning a Siri AI-compatible iPhone.
Evercore ISI outlined potential monetization scenarios for Siri AI, including $21 billion in annualized subscription revenue at 125 million paying accounts with $14 per month, or $45 billion in transaction revenue at 125 million monthly transacting users with $600 per month of eligible spend and a hypothetical 5% take rate. The firm noted that Siri AI’s advantage lies in its native access across apps and payments, allowing for frictionless transactions compared to web-based agents.
Analysts have revised their earnings upwards for the upcoming period, with Apple maintaining a "GREAT" financial health score and a perfect Piotroski Score of 9. Recent adjustments in stock price targets and analyst ratings reflect a mixed outlook on Apple’s financial performance and strategic positioning. Bernstein raised its price target to $380, citing Apple’s position in AI and market share gains, while JPMorgan lowered its target to $355 due to concerns over services revenue growth and gross margins.