Apple shares are poised to rally from here on better-than-expected demand for its upcoming iPhones, according to Loop Capital. The investment firm upgraded Apple to buy from hold. It also raised its priced target to $315 per share from $226, implying nearly 25% upside from Friday's close. The firm's supply chain analysis indicates "that we are NOW at the front end of AAPL's long-anticipated adoption cycle that suggests ongoing iPhone shipment expansion through CY2027," wrote analyst Ananda Baruah said Monday in a note to clients. "While [Wall] Street is baking in some degree of outperformance from AAPL's iPhone 17 family of products, we believe there remains material upside to Street expectations through CY2027," Apple's plans to roll out iPhones with differentiated designs, including lighter and foldable devices, will likely lead to greater demand for its flagship products, benefiting the Big Tech company's stock, according to Loop. The smartphone maker also intends to release its first purpose-built "AI Phone," which would mark another innovative product release from the firm, the note added. "If this ends up being the case, then this would ultimately qualify as the third consecutive year of design innovation," Baruah said. In September, Apple saw better-than-expected demand for its iPhone 17 family of devices. The line featured the smartphone maker's first significant redesign of its flagship product in years. The analyst also noted that Apple "could be on the front end of (close to) three consecutive record iPhone shipment years" between 2025 and 2027. Loop's optimism comes as Apple shares have finally started working after being underwater for most of the year. Apple shares are up 22% in the last three months and are now up 3% for 2025. The stock was up 2% Monday following the Loop call. Loop Capital's rating is in line with consensus on Wall Street. Of the 52 analysts with ratings on Apple, 32 have a buy or strong buy on shares, LSEG data shows.
