JPMorgan's recent report highlights Apple's (AAPL, Financial) guidance for the fiscal quarter ending in March as a focal point for investors, particularly in understanding the trends in the Chinese market. The Chinese market has recently faced revenue challenges, but Apple's outlook has exceeded expectations. It suggests a strong finish in the last fiscal quarter and reduced inventory in sales channels, easing concerns for the upcoming quarter.
Apple's revenue growth for the fiscal quarter ending in March is expected to be in the low to mid-single digits. Consequently, JPMorgan has increased Apple's target price from $260 to $270, maintaining an "overweight" rating. However, they have adjusted the earnings per share forecast for the fiscal year 2026 from $9 to $8.7.
Despite adjustments to the 2025 fiscal year iPhone growth predictions, the market is optimistic about significant AI-driven upgrades in the iPhone 17 product cycle, anticipated in the 2026 fiscal year. Investors are still observing sales trends, and JPMorgan expects Apple's stock to continue trading at the upper limit of its valuation range, around a 30x multiple.
