Last week, iPhone maker Apple (AAPL) impressed investors with its better-than-expected revenue and earnings for the second quarter of Fiscal 2026. The company also issued a strong revenue outlook for the fiscal third quarter. Impressed by the Q2 FY26 print, top Bernstein analyst Mark Newman reiterated a Buy rating on Apple stock and increased the price target to $350 from $340.
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Also, top Bank of America analyst Wamsi Mohan highlighted strong growth in App Store revenue.
Top Bernstein Analyst Sees Continued Strength in Apple
Following the strong Q2 FY26 print, Newman raised his price target and estimates for Apple as he expects the company’s market share gains and higher ASPs (average selling prices) to continue.
The 5-star analyst noted that Apple’s fiscal second-quarter results and Q3 FY26 guidance were solid across the board. Revenue grew 17% in Q2 FY26, and the company guided for 14% to 17% growth in the fiscal third quarter. Newman also noted the strength in Q2 gross margin of 49.3%, with Q3 guidance at 48%. “Share gains in Smartphones and PCs playing out and expected to continue,” said Newman.
BofA Analyst Remains Bullish on AAPL Stock
Mohan reiterated a Buy rating on AAPL stock with a price target of $330. The 5-star analyst highlighted that, according to data on developer revenue from SensorTower, App Store revenue in Q3 FY26 (after 33 days) increased 3.7% year-over-year to $3.2 billion. Also, total downloads (iPhone + iPad) increased 0.7% year-over-year to 3.1 billion during the same period. In Q3 FY26 (after 33 days), Mohan noted that App Store dollars per download rose 3% year-over-year to $1.01.
For April, App Store revenue grew 4.4% year-over-year globally, outpacing the 0.8% growth in downloads. Mohan highlighted that China showed another sequential revenue improvement, with 10.2% growth year-over-year. This marked the first double-digit growth since April 2025. However, China downloads declined 2.6% year-over-year, reflecting a similar pattern as last month.
Overall, Mohan remains bullish on Apple stock, citing strong capital returns, optionality from new products and markets, and his belief that the company will eventually be a winner at AI at the edge.
Is AAPL Stock a Buy, Hold, or Sell?
Currently, Wall Street has a Moderate Buy consensus rating on Apple stock based on 17 Buys, 10 Holds, and one Sell recommendation. The average AAPL stock price target of $311.78 indicates about 13% upside potential.
