Jefferies boosts Apple price target citing resilience to cost pressures

Investment firm Jefferies has increased its price target for Apple to $283.36 from $246.99, according to a new research note. The firm maintained its Hold rating on the stock, signaling a cautious but optimistic outlook.
At the time of the update, Apple’s shares were trading around $274.62, meaning the new target implies a modest potential upside of approximately 3%.
Analysts at Jefferies highlighted Apple’s strong positioning against rising memory costs, largely thanks to the company’s premium pricing strategy and high average selling price (ASP). This buffer has helped sustain a healthy gross profit margin of 46.91% over the trailing twelve months.
Looking ahead, Jefferies’ proprietary forecasting model anticipates some challenges in calendar year 2026, including a 3% decline in sales volume and a 2 percentage point compression in gross margins. The firm also projects an roughly 8% drop in volume for that year, attributed primarily to shifts in product launch schedules.
To counter these headwinds, Jefferies is modeling a $100 increase in the ASP for the anticipated iPhone 18 model, which it expects will help mitigate any downward pressure on margins.
In a positive adjustment, the firm raised its iPhone unit sales estimates for the first quarter of fiscal year 2026 by 7% and for the full fiscal year 2026 by 3%. Additionally, Jefferies now incorporates a foldable iPhone into its projections starting in fiscal year 2027, reflecting long-term innovation potential.
The analysts’ earnings per share forecast for the first quarter of fiscal 2026 stands 6% above street consensus. Overall, the discounted cash flow valuation underpinning the new price target represents a 15% increase from prior assumptions.
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MacDailyNews Take: While the Hold rating suggests limited near-term catalysts for significant outperformance, Jefferies’ upward, and rather precise, price target move underscores confidence in Apple’s ability to navigate industry cost pressures through pricing power and strategic product evolution.

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