Apple (AAPL) stock has risen about 28% over the past six months, driven by strong demand for iPhone 17 and continued growth in the Services business. Despite several positives, top Raymond James analyst Mellisa Fairbanks resumed coverage of Apple with a Hold rating and no price target, as she believes that the stock’s valuation could limit its upside potential over the near term.
Claim 70% Off TipRanks Premium
- Unlock hedge fund-level data and powerful investing tools for smarter, sharper decisions
- Stay ahead of the market with the latest news and analysis and maximize your portfolio's potential
Raymond James Analyst Is Cautious on AAPL Stock
Fairbanks noted that Apple stock’s valuation already reflects the company’s solid fundamentals and better product cycles. The 5-star analyst highlighted Apple’s dominant position in consumer hardware, ecosystem, and services, “with a highly sticky value proposition.” However, Fairbanks believes that investors are aware of these strengths.
Furthermore, Fairbanks argued that given the iPhone maker’s extensive user base of about 2.4 billion, additional gains from technology upgrade cycles could be tough to achieve. The analyst pointed out that while Apple’s Services business carries a higher margin and provides recurring revenue that helps mitigate the seasonality of hardware sales, the company’s overall performance continues to be mainly impacted by hardware cycles, particularly that of the iPhone. Fairbanks also cautioned about risks associated with tariff-related cost pressures, component pricing, and supply chain concentration in China.
The analyst highlighted that the recent rise in AAPL stock was mostly driven by the iPhone 17 refresh cycle. “While we don’t discount the value generated by this growth (likely exceeding $217 billion in CY25), with a valuation several turns above the 5-year average P/E, we remain on the sidelines at this time,” said Fairbanks. Specifically, Fairbanks noted that AAPL stock is trading at about 31x Fiscal 2027 GAAP earnings per share (EPS), above its 5-year average multiple in the high-20s.
Fairbanks ranks No. 621 among more than 10,100 analysts on TipRanks. She has a success rate of 76%, with an average return per rating of 26.3% over a one-year period.
Is AAPL Stock a Buy, Sell, or Hold?
Currently, Wall Street has a Moderate Buy consensus rating on Apple stock based on 19 Buys, 11 Holds, and two Sell recommendations. The average AAPL stock price target of $299.10 indicates 10.4% upside potential.
