Evercore ISI Hikes Apple Price Target to $365: Bull Case Now $500 on Services Compounding

"Evercore ISI raised its price target on Apple ( NASDAQ:AAPL | AAPL Price Prediction) to $365 from $330 while reiterating its Outperform rating, and the firm flagged a bull case scenario of $500 tied to a Services compounding thesis. Apple stock trades near $299, just below its 52-week high of $300.92."

"Evercore's case: Apple can compound earnings and free cash flow at a low-to-mid teens pace even without meaningful iPhone unit growth. The price target raise signals confidence in durable, high-margin recurring revenue."

"The firm argues that this combination delivers attractive returns even if iPhone units grow only "modestly." Services is the engine. Apple posted an all-time Services revenue record of $30.976 billion, growing 16% year over year at a Services gross margin of 77%. That high-margin recurring revenue stream, spanning the App Store, iCloud, Apple Music, Apple TV+, Apple Pay, AppleCare, and advertising, drives the bull case path to $500."

"Apple ended its March quarter with revenue of $111.184 billion, up 17% year over year and diluted EPS of $2.01, beating consensus by 4%, extending its streak to eight consecutive quarters of EPS beats. The board authorized a $100 billion buyback program and a 4% dividend increase, reinforcing the capital return leg of the thesis. Together, these actions extend Apple's multi-year track record of returning cash to shareholders while supporting EPS growth."

Evercore ISI raised its Apple price target to $365 from $330 while reiterating an Outperform rating. The firm also outlined a bull case of $500 tied to a Services compounding thesis. Apple is expected to compound earnings and free cash flow at a low-to-mid teens pace even if iPhone unit growth remains modest. The compounding levers include Services revenue growth, average selling price tailwinds from a premium iPhone mix shift, and aggressive capital return. Services revenue reached an all-time record of $30.976 billion, growing 16% year over year with 77% gross margin. Apple reported March-quarter revenue of $111.184 billion, 17% year over year growth, and eight straight quarters of EPS beats. The board authorized a $100 billion buyback and increased dividends by 4%.

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