UBS Keeps Neutral Rating on Apple Amid Slowing App Store Growth

UBS has maintained a Neutral rating on Apple Inc., setting a price target of $296.00, despite the stock trading near its 52-week high of $345.34. According to InvestingPro data, Apple's shares appear overvalued relative to their Fair Value estimate, placing the company among the Most Overvalued stocks.

The firm's analysis of App Store data from Sensor Tower indicates a 5% year-over-year revenue growth in September, leading to approximately 2% growth for the September 2026 quarter. On a foreign exchange-neutral basis, this growth shrinks to about 1%. This marks the second consecutive quarter of low-single-digit App Store growth, even with a more favorable comparison period.

Global App Store revenue rose approximately 2% year-over-year in the September 2026 quarter, down from the June 2026 quarter. U.S. App Store revenue fell about 7%, while rest-of-world revenue increased around 7%, though both figures show declines compared to the previous quarter. The September performance improved from earlier flat growth trends.

In other recent news, Morgan Stanley lowered its price target for Apple from $360 to $355 but kept an Overweight rating, citing limited upside post-iPhone launch. Meanwhile, Needham maintained a Hold rating, citing competitive threats from Meta Platforms and other AI-focused companies. Additionally, a consumer class action in the UK against Apple and Amazon regarding their 2018 sales agreement has been allowed to proceed.