Apple’s Stock Surges Past Milestone Following Upgrade
Apple Inc. has witnessed an impressive surge of over 50% this year, ultimately flipping its fortunes to positive as of late September.
[NEW YORK] On Monday, October 20, shares of Apple reached an unprecedented peak for 2025 after Loop Capital elevated its rating from hold to buy, becoming the most recent analyst to underscore the optimistic demand trends for the iPhone.
The stock ascended by 3.9% to US$262.24, eclipsing an all-time high that had remained intact since December. Once a notable underperformer within the S&P 500 Index, Apple had plummeted by as much as 31% at its nadir in April.
Nonetheless, the company has since rebounded substantially, achieving more than a 50% increase.
This remarkable recovery can be attributed to emerging indications of stronger-than-anticipated demand for its latest iPhone lineup, fueling speculation that a long-anticipated upgrade cycle is finally in progress.
Over the weekend, data from Counterpoint Research revealed that the iPhone 17 series outperformed its predecessor, the iPhone 16, by 14% during their respective first ten days available for purchase in both the U.S. and China.
“We are now at the onset of Apple’s long-awaited adoption cycle,” Loop analyst Ananda Baruah declared in his upgrade note. This development signifies “a fusion of refresh cycles and demand spurred by new design innovations”.
The analyst also revised the price target upwards to an unprecedented US$315, suggesting a potential upside of approximately 20% from Monday’s closing figure.
Investors had anticipated a parallel upgrade surge following the iPhone 16 launch but were left largely underwhelmed when several much-touted artificial intelligence features either faced delays or were ultimately not introduced.
However, a growing number of firms beyond Loop are adopting a more favorable outlook regarding Apple’s prospects. Evercore ISI has included the stock in its tactical outperform list, citing data on iPhone demand that indicates this could surpass the typical iPhone refresh cycle.
Analyst Ben Reitzes from Melius Research asserts that Apple is “regaining its momentum”, expressing that “Apple is on a mission to quell its detractors”.
He highlighted positive indicators in China alongside “overall momentum in new models”, with forthcoming products likely to serve as additional catalysts.
Despite this optimism, some analysts remain skeptical regarding whether the early momentum of the iPhone 17 justifies Apple’s current valuation.
The shares are trading at over 32 times projected earnings, significantly above their 10-year average of 22 times.
Additionally, Apple boasts a premium valuation compared to the Nasdaq 100, ranking as the most expensive stock in the Magnificent Seven aside from Tesla.
Apple continues to receive less adoration relative to its mega-cap peers. Even with Loop’s recent upgrade, fewer than 60% of analysts tracked by Bloomberg advocate for purchasing the stock, marking the lowest recommendation among the Magnificent Seven, excluding Tesla.
Jefferies analyst Edison Lee, one of only four to carry a sell-equivalent rating on Apple, cautioned over the weekend that the “sales momentum for the iPhone 17 is beginning to wane.”
Earlier this month, Lee downgraded the stock to underperform, stating that excitement surrounding a possible foldable iPhone appears “overblown,” as it would likely carry a steep price and could potentially cannibalize sales of the Pro Max version. BLOOMBERG
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