Apple (AAPL) is trading lower today and is down about 3% over the past five days, as investors weigh near-term concerns around cost pressures and Services growth. But Goldman analyst Michael Ng remains constructive on Apple, reiterating a Buy rating and a $320 price target, despite the recent weakness. In his view, the stock’s dip is driven by short-term concerns and does not signal any change in Apple’s long-term growth outlook.
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Why Goldman Sees the Pullback as an Entry Point
To begin with, Ng expects Apple to benefit from a continuing iPhone refresh cycle, forecasting iPhone revenue growth of 9% in both fiscal 2026 and fiscal 2027.
For the first quarter of fiscal 2026, Goldman estimates EPS of $2.66, broadly in line with Wall Street expectations. More importantly, Ng sees iPhone revenue rising 13% year over year, driven by 5% unit growth and stronger price and mix. China stands out as a key driver, with iPhone shipments there projected to jump 26% year over year.
Looking further ahead, Goldman highlighted several catalysts that could support demand over the next two years. These include the launch of the iPhone Fold in fall 2026, a shift toward a biannual iPhone release cycle, and upcoming software upgrades such as iOS and Siri 2.0.
Ng believes these changes should lift upgrade rates and keep Apple’s ecosystem sticky, even as competition in consumer hardware intensifies.
Services Strength Helps Protect Margins
While App Store spending growth slowed to about 7% in the first quarter of fiscal 2026, Goldman remains constructive on Apple’s Services business overall. Ng forecasts Services revenue growth of 14%, supported by momentum in areas like iCloud+, AppleCare+, and advertising.
This continued mix shift toward Services, combined with favorable product pricing, should help Apple offset potential headwinds from rising memory costs and support gross margins.
Is Apple a Buy or Sell Right Now?
Turning to Wall Street, analysts have a Moderate Buy consensus rating on AAPL stock based on 19 Buys, 11 Holds, and two Sells assigned in the past three months, as indicated by the graphic below. Furthermore, the average AAPL price target of $298.49 per share implies 18.65% upside potential.
