Bank of America Securities anticipates Apple (AAPL, Financial) will report revenue exceeding expectations, driven by demand brought forward due to tariff concerns. The firm has slightly increased its revenue forecast for Apple's March and June quarters, but has lowered projections for later periods to account for higher costs from a more complex supply chain and the delayed launch of AI-enabled Siri. A weaker dollar is expected to aid revenue and gross margin growth from the June quarter onward. Despite uncertainty in the economic outlook, demand is predicted to slow, particularly for economically sensitive wearable products, with minimal impact expected on iPhone and Mac segments.
Additionally, Apple's services business is projected to show robust growth. The firm adjusted Apple's fiscal year 2025 and 2026 revenue predictions to $412 billion and $440 billion, respectively, down from previous estimates. Earnings per share forecasts have been modified to $7.25 and $7.82. The target stock price has been reduced from $250 to $240, yet the "buy" rating is maintained.
