Apple Stock A ‘Tactical Outperform’ on Evercore iPhone 17 Optimism

Apple's stock (NASDAQ:AAPL) is experiencing renewed bullish sentiment, with Evercore ISI adding AAPL to its “Tactical Outperform” list, signaling a potential upswing driven by strong iPhone 17 demand. The technology giant's stock is currently trading at $253.17 in the pre-market session, up 0.35%.

The move reflects growing confidence in Apple's ability to outperform expectations in the coming quarters. Evercore ISI's analyst, Amit Daryanani, maintains an “Outperform” rating on Apple shares, setting a price target of $290.

This positive outlook is underpinned by data suggesting a robust iPhone refresh cycle, with lead times for the base iPhone 17 exceeding those of the prior year. Survey data also points towards strong consumer demand, fueling expectations of a better-than-average performance.

This endorsement comes on the heels of several positive analyst evaluations throughout the year. In late September, Evercore ISI raised its price target from $260 to $290, citing a consumer survey that revealed increased interest in hardware upgrades, particularly for the iPhone 17 Pro and Pro Max models. The survey also highlighted a growing preference for higher memory configurations, which could potentially drive average selling prices up by approximately 7% year-over-year, boosting Apple's revenue.

Despite a recent deceleration in App Store revenue growth, Evercore ISI reaffirmed its “Outperform” rating and $290 price target in early October. While App Store revenues grew 7% year-over-year in September, a slowdown from 14% in August, the firm remains confident in Apple's ability to achieve double-digit Services growth for the September quarter. This confidence underscores the strength and diversification of Apple's revenue streams beyond hardware sales.

Earlier in the year, in March 2025, Evercore ISI released its fifth annual “Apple Primer,” raising the price target from $260 to $275 and reaffirming its “Outperform” rating. The firm highlighted Apple's position as a “tech staple” capable of sustaining mid-single-digit revenue growth and low-to-mid-teen growth in earnings per share and free cash flow over the coming years. Key growth drivers identified include expansion in emerging markets, innovation in AI features, and strategic moves into healthcare, advertising, and payments.

However, it is important to note that while the overall sentiment is bullish, challenges remain. The deceleration in App Store revenue growth serves as a reminder that Apple's Services segment, while strong, is not immune to market fluctuations. Macroeconomic factors and evolving consumer preferences could also impact demand for Apple's products and services.

The markets will be closely watching Apple's upcoming earnings reports and guidance for further confirmation of the positive trends identified by Evercore ISI. The ability to maintain strong iPhone sales, drive growth in the Services segment, and successfully execute on its strategic initiatives will be critical to achieving the $290 price target.

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