Bank of America doubles down on Apple stock for rest of 2026

3 weeks ago 34

Hillary Remy

Sun, August 2, 2026 astatine 12:07 PM CDT 5 min read

Apple's June 4th produced numbers that looked coagulated connected the aboveground but near investors with a question: Was September 4th guidance conservative, oregon was the concern really slowing?

Bank of America published its reply connected July 30. The steadfast says investors are misreading the results and that the underlying concern is stronger than the header numbers show.

Bank of America expert Wamsi Mohan reiterated his Buy standing connected Apple and held his $380 terms target. Apple's banal closed July 30 astatine $333.43, making the people astir 14% supra wherever shares ended the day. Mohan besides raised his EPS estimates for the adjacent 3 fiscal years, Investing.com reported.

Why Bank of America says Apple's 4th was amended than it looked

Apple reported Q3 2026 gross of $109.4 billion, up 16% from a twelvemonth earlier. EPS came successful astatine $2.02. Bank of America flagged that astir $0.11 of that fig came from a tariff refund. Once you backmost that out, net were astir successful enactment with expert projections. Apple met expectations. It did not wide them by a wide margin.

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September 4th guidance of 9% to 11% gross maturation work arsenic humble to immoderate investors.

Bank of America's presumption is that the guidance reflects what Apple tin manufacture, not what consumers privation to buy.

The steadfast says Apple is facing accumulation shortages connected iPhones, Macs, and iPads tied to choky proviso of precocious semiconductor nodes utilized successful Apple's customized chips. The analysts judge Apple would merchantability much devices if it could physique much of them.

iPhone gross was $54.2 cardinal successful the June quarter, up 22% twelvemonth implicit year.

Apple gained planetary smartphone marketplace share. June-quarter iPhone upgraders reached a record. The installed basal deed different record. Management said request exceeded its ain interior expectations. It besides said it saw nary grounds that customers pulled guardant purchases up of anticipated terms increases.

Bank of America reads some points arsenic confirmation that iPhone request is genuine.