Bank of America: Raised Apple's target price to $325, quarterly performance is expected to exceed market expectations.

Bank of America Securities released a research report stating that due to strong iPhone sales, double-digit growth in service revenue, and exchange rate gains, Apple's performance in the March quarter is expected to surpass market expectations. Future catalysts include the expected new round of share repurchase authorization, the global developer conference in June, the launch of a foldable iPhone in the fall, and the release of an enhanced version of Siri integrated with Gemini AI, all of which are expected to drive higher demand for upgrades. The bank forecasts that iPhone demand will remain strong and has raised its March quarter iPhone shipment forecast to 60 million units. The bank estimates second-quarter revenue and earnings per share to be $113 billion and $2, respectively, higher than market expectations of $109 billion and $1.93. In addition, the bank has raised its full-year revenue and earnings per share forecast for Apple's fiscal year 2026 from $462 billion and $8.36 to $466 billion and $8.55, respectively; the target price has been raised from $320 to $325, and a "buy" rating has been reiterated.