Apple Inc.: Reaffirmed Buy on Strengthening Services Ecosystem and Broad-Based App Store Recovery

Analyst Mike Ng from Goldman Sachs reiterated a Buy rating on Apple and keeping the price target at $330.00.

Mike Ng has given his Buy rating due to a combination of factors tied to the resilience and growth trajectory of Apple’s Services business, particularly the App Store. He points to an acceleration in App Store revenue growth to roughly 7% year over year in January 2026, up from about 6% in December 2025, as a sign of improving momentum. Within key categories that make up the majority of App Store revenue, such as Games, Entertainment, and Photo & Video, he highlights either improving or consistently strong performance, indicating a broad-based recovery rather than strength in just one niche. He also notes that spending trends by geography show stability in the US and faster growth in important international markets like China, Japan, and the UK, supporting a more diversified and durable revenue base for Apple.

At the same time, Ng acknowledges that current App Store growth is running below Apple’s guidance for overall Services revenue but expects other components of the Services segment—such as iCloud+, AppleCare+, Apple Pay, and additional subscriptions—to grow more quickly and help Apple meet its targets. He recognizes some near-term risk from the adoption of off-app payment options, particularly in popular gaming titles, yet still concludes that the App Store will continue to be a significant long-term driver of Services revenue. Taken together, these factors lead him to reaffirm his Buy rating on Apple, as he believes the company’s Services ecosystem, anchored by the App Store, supports a favorable long-term growth outlook despite shorter-term headwinds.

In another report released yesterday, Bank of America Securities also reiterated a Buy rating on the stock with a $325.00 price target.