Apple upgraded to Hold from Underperform at Jefferies

Jefferies upgraded Apple (AAPL) to Hold from Underperform with a price target of $167.88, down from $202.33. The firm reduced iPhone shipment estimates by up to 7% through fiscal 2027 due to global recession risks, and cut its artificial intelligence revenue forecasts in fiscal 2028 and beyond given a bearish view on smartphone AI. Jefferies still assumes Apple will be exempted from U.S. tariffs and upgraded the shares to Hold given the recent selloff. However, Apple shears are “still not cheap,” the analyst tells investors in a research note. Jefferies’ base case remains that Apple would be exempted from U.S. tariffs, given its commitment to invest $500B in the U.S. over the next four years, and its belief that it would make additional manufacturing investment commitment in the U.S. However, a rising risk of global recession “could further impact already-weak iPhone demand,” the firm says.