Apple Inc. (AAPL) shares edged lower Monday despite getting some love from Wall Street analysts. Sometimes stocks just need to catch their breath, even when the news is good.
The Bullish Case Builds
Wedbush's Dan Ives bumped his price target on Apple from $320 to $350 while maintaining an Outperform rating. His optimism hinges on growing confidence in Apple's AI strategy and continued strength in iPhone sales.
Ives is positioning 2026 as the year Apple truly enters the AI revolution. In a post on X, he noted that "iPhone 17 sales have been trending well into year-end including in China as Apple continues to execute above Street."
China Momentum Continues
The upgraded price target reflects Apple's strengthening performance in China's premium smartphone market. In October, roughly one out of every four smartphones sold in China was an iPhone, with shipments climbing 37% year-over-year on robust iPhone 17 demand.
All three iPhone 17 models posted strong double-digit growth, led by the base model. New devices accounted for more than 80% of Apple's unit sales in China, and higher average selling prices should boost revenue, potentially setting up a record December quarter.
The AI Wildcard
While Ives highlighted Apple's full-scale AI push in 2026 as a major catalyst, the company faces some global headwinds. China's internet regulator has delayed approvals for Apple's planned AI features, creating an opening for domestic brands to move faster. According to Omdia analyst Lucas Zhong, Chinese vendors are pushing ahead more aggressively on AI, giving them a window to capture share even as Apple's near-term performance stays strong.
More Analyst Action
Ives wasn't alone in his optimism. Evercore ISI Group analyst Amit Daryanani maintained Apple with an Outperform rating and raised his price target from $300 to $325 on Monday. Other recent upgrades this month include an Outperform rating and $330 price target from CLSA, plus a Buy rating and $325 price target from Loop Capital.
Despite all this bullish sentiment, Apple shares were down 0.71% at $276.80 at the time of publication on Monday. The stock recently hit new highs of $288.62 and appears to be consolidating after that run.
