Wall Street Bullish on Apple Ahead of Quarterly Earnings

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With Apple Inc. scheduled to release its quarterly results on January 29, a wave of optimism is sweeping through Wall Street. Several top-tier investment banks have reaffirmed their positive ratings on the tech giant's stock, viewing its recent approximate 9% decline in value as a potential entry point for investors.

The collective view among 42 covering analysts remains a "Moderate Buy," with an average price target of $289. This suggests an upside potential of roughly 17% from recent levels. CEO Tim Cook and CFO Kevan Parekh will present the figures after the market closes on January 29, with insights into the company's AI strategy following the recently announced Gemini partnership with Google expected to be a key focus.

Divergent Perspectives from Major Firms

Goldman Sachs reiterated its Buy rating on January 23, maintaining a $320 price target. Analyst Michael Ng forecasts iPhone revenue growth of 13%, driven by a 5% increase in unit sales. A standout projection is a 26% surge in revenue from China, attributed to Apple reclaiming its top position in the Chinese smartphone market during the holiday sales period.

Evercore ISI adopted an even more bullish stance, adding Apple to its "Tactical Outperform" list. The firm's $330 price target accompanies an expectation for a significant 17% jump in iPhone revenue. This optimism stems from stronger consumer uptake of higher-priced models during the Christmas quarter, which is anticipated to boost average selling prices. Evercore projects quarterly revenue of $140.5 billion, surpassing the consensus estimate of $138.3 billion.

Wedbush analyst Dan Ives issued the most optimistic price target on the Street at $350. He characterized 2026 as a potentially "monumental year" for Apple, citing the company's accelerating artificial intelligence strategy.

Not all commentary is without caution. Citi analyst Atif Malik reduced his price target from $330 to $315, though he maintained a Buy recommendation. The adjustment reflects concerns over rising costs, specifically an anticipated 50% increase in DRAM memory chip prices by 2026. Despite this headwind, Malik still expects Apple's quarterly results to exceed market expectations.

Product Announcements Coincide with Earnings

Adding to the eventful week, Apple is hosting a Creator Event in Los Angeles from January 27-29, timed closely with its earnings release. Industry observers anticipate the unveiling of new MacBook Pro models featuring M5 Pro and M5 Max chips. Furthermore, the launch of the Creator Studio software package is set for January 28, one day before the earnings call.