Rosenblatt raised Apple’s price target to $303, but the new target still implies roughly 4.4% downside from current levels.
- Rosenblatt expects higher iPhone prices and a greater mix of premium products to help Apple manage supply-chain pressures.
- The firm sees stronger product innovation as key to Apple justifying its premium valuation.
- Apple’s new CEO John Ternus will face an early test on September 9 when Apple holds its major iPhone launch event.
Apple (AAPL) traded largely flat in pre-market trade on Tuesday, despite Rosenblatt raising its price target to $303 from $300 while maintaining a ‘Neutral’ rating on the shares.
The price target hike comes as John Ternus takes over as CEO from Tim Cook, marking the start of a new era for the iPhone maker. Cook will remain with Apple as executive chairman.
The leadership transition comes just days before Apple’s September 9 product event, which will be Ternus’ first major iPhone launch as CEO. Investors will be watching for signs that the new leadership can accelerate product innovation while maintaining the company’s strong financial performance.
AAPL stock edged as much as 0.13% higher in pre-market trade. On Stocktwits, retail sentiment around the company remained in ‘extremely bearish’ territory over the day, down from ‘bearish’ last week.
Rosenblatt Sees Limited Apple Stock Upside
Rosenblatt’s $303 price target remains below Apple’s share price of $316.85 at Monday’s close. That implies roughly 4.4% downside.
In a note to investors cited by TheFly, the firm said it expects Apple to manage supply-chain pressures through higher prices and a greater mix of premium products. It added that while that could support margins, higher prices could also put more pressure on consumer demand.
The upcoming iPhone launch could provide an early test. Apple has scheduled its next major product event for September 9, with the company expected to unveil new iPhone models and other hardware.
Apple Stock Faces High Valuation Bar
Apple shares have already gained 36.5% over the past year, and the broader analyst view remains positive. Koyfin data showed that of the analysts tracking AAPL stock, six rate Apple a ‘Strong Buy,’ 19 rate it ‘Buy,’ 14 rate it ‘Hold,’ three rate it ‘Sell,’ and two rate it ‘Strong Sell.’
The average 12-month price target stands at $324.45, representing roughly 2.4% upside from the current price. Rosenblatt’s $303 target sits well below that average.
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