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Apple (NASDAQ:AAPL) was in focus on Tuesday as Evercore ISI raised its price target and revenue estimate for iPhones for fiscal year 2025, citing expected benefits from the tech giant’s recent artificial intelligence announcements.
Shares rose 0.8% in premarket trading.
“Apple stock has seen a nice increase since WWDC, but we still think there is more room to run as we see potential for material upside to current iPhone revenue expectations,” analyst Amit Daryanani wrote. “Apple’s decision to limit Apple Intelligence features to the iPhone 15 Pro or the upcoming iPhone 16 lineup should result in strong demand for the new phones. If Apple can deliver on the features demonstrated at WWDC, we think consumers will find Apple Intelligence compelling enough to shorten the replacement cycle and induce iPhone 13/14 Pro and iPhone 15 owners to upgrade more quickly than they otherwise would.”
Daryanani raised his price target to $250 from $220 and increased his iPhone revenue estimate to $213B from $207B for fiscal 2025, noting that even a one-month decline in the replacement cycle could add $14B in revenue.
Daryanani now expects full-year 2025 revenue to be $418B and earnings at $7.55 per share. A consensus of analysts expect Apple to earn $7.27 per share on $412.89B in revenue.