Investment firm Evercore has raised its price target for Apple stock by $35 to $365. This is based on the expectation that Apple Intelligence will become a key growth driver in the long term – despite all the delays surrounding the new Siri generation. This is the fifth price target increase by Evercore since September 2025.
Evercore's move aligns with a growing group of optimistic Apple analysts. Wedbush recently raised its price target to a record $400, also citing Apple Intelligence as a key argument, and UBS also increased its expectations for Apple ahead of the quarterly results. However, Evercore's new analysis is unusually comprehensive: Spanning over 100 pages, the analysts examine all of Apple's relevant business areas – with a clear message: Investors should take a long-term view of the iPhone maker.
From short-term noise to long-term picture
Evercore observes that many investors are currently too focused on short-term problems – such as the ongoing delays with Apple Intelligence or the current shortages of memory and processors. From the analysts' perspective, this distracts from the truly crucial point: Apple's ecosystem.
This is precisely where analysts see Apple's greatest advantage. They describe the ecosystem as "unrivaled" and a key factor in Apple's ability to maintain mid- to high-single-digit revenue growth. The valuation model rests on four pillars: high gross margins in the services mix, Apple's control over the supply chain, the increasing premiumization of iPhone models, and the monetization of AI features.
Premiumization drives up the average selling price
The anticipated foldable iPhone plays a central role in Apple's premiumization strategy. Evercore expects the new model to significantly raise Apple's average selling price – an effect analysts consider a key driver of margin growth. While it has long been agreed that Apple is entering a significantly higher price segment with the foldable iPhone, it is the combination of high margins, ecosystem integration, and AI enhancements that makes the model, in analysts' view, the strategically crucial next-generation product.
AI monetization: two paths open
More interesting is the fourth point: the monetization of Apple Intelligence. Evercore outlines two possible approaches. The first is the direct marketing of individual Apple Intelligence features – a model that has been discussed for some time and would be based on a premium tier of Apple's AI offering.
The second approach is newer and more interesting: Apple could profit from subscriptions via the App Store that originate from third-party apps using Apple Intelligence. In this scenario, Apple wouldn't charge for the AI itself, but rather for distribution and platform services – a model that fits Apple's existing business model much better than its own chatbot subscription.
Apple Intelligence without the AI arms race
A key point of Evercore's analysis is the assessment that Apple doesn't need to win the AI race through sheer investment volume. While competitors like Microsoft, Google, and Meta are pumping billions into data centers and model training, Evercore assumes that Apple can manage with significantly lower capital expenditures.
The reason for this lies in Apple's on-device processing strategy: A large portion of AI tasks run directly on iPhones, iPads, and Macs, eliminating the need for expensive cloud infrastructure. For investors, this is a doubly positive signal – on the one hand, lower capital commitment, and on the other, a clear differentiator from the competition.
A successful Apple intelligence comeback is still possible in 2026
Despite the delays, Evercore believes a successful relaunch of Apple Intelligence is still realistic sometime in 2026. The platform is expected to make its next major appearance at the upcoming developer conference in June, where Apple is expected to unveil a revamped Siri and other AI features. The specific focus Apple will place is a key expectation surrounding WWDC 2026 and will significantly influence whether Wall Street's expectations are confirmed in the short term.
However, the risk of a further delay has not been eliminated. Should Apple Intelligence again fall short of expectations, the pressure on the share price is likely to increase significantly – and Evercore's current optimism would have to be reassessed.
The valuation trend is clearly upwards
With its new price target of $365, Evercore joins a growing number of increasingly aggressive Wall Street assessments. What was considered ambitious a year ago is now the consensus among optimists: Apple's ecosystem profitability, the premiumization of its product line, and its long-term AI potential outweigh the short-term risks, according to analysts. The validity of this interpretation will likely be assessed based on the Q2 results and Apple's outlook for the current fiscal year.
Apple remains in the analysts' focus – and the bar is being raised
Evercore's fifth price target increase in just under eight months demonstrates how quickly expectations for Apple can shift. As long as the iPhone business remains stable, the services division continues to grow, and Apple Intelligence moves from mere announcement to measurable added value, further price target increases are likely. At the same time, this also increases the pressure of expectations – every new quarterly report, every WWDC keynote, and every delayed Apple Intelligence feature is measured against an increasingly ambitious benchmark. (Image: Shutterstock / Mijansk786)
Disclaimer: No recommendation for investments
This article does not constitute financial or investment advice. The information contained herein is for journalistic and informational purposes only. Please conduct your own research or consult a financial advisor before making any investment decisions.
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