UBS Keeps Apple Neutral Amid Slowing App Store Growth

UBS has maintained a Neutral rating on Apple Inc. with a price target of $296.00, while the stock currently trades at $330.87, close to its 52-week high of $345.34. According to InvestingPro data, Apple shares appear overvalued and are included in the Most Overvalued list.

The firm’s analysis of App Store data from Sensor Tower indicates that revenue grew 5% year-over-year in September, contributing to approximately 2% growth for the September 2026 quarter, or about 1% on a foreign exchange neutral basis. This marks the second consecutive quarter of low-single-digit App Store growth, despite an easier comparison period. Global App Store revenue increased approximately 2% year-over-year in the September 2026 quarter on a reported basis, down from the June 2026 quarter.

U.S. App Store revenue fell approximately 7% year-over-year in the September 2026 quarter on a reported basis, while the Rest of World revenue increased approximately 7% year-over-year, though both figures show declines compared to the previous quarter. The September performance improved from the flat growth observed earlier in the period.

In other recent news, Morgan Stanley lowered its price target for Apple from $360 to $355 but maintained an Overweight rating, citing steady demand for the iPhone 18. Needham reiterated a Hold rating, citing competitive threats from Meta Platforms and other AI-focused companies. Additionally, a consumer class action against Apple in the UK has been allowed to proceed, focusing on a 2018 sales agreement for Apple products on Amazon’s UK marketplace.