Better-than-expected iPhone demand and lower operating expenses could drive an earnings beat for Apple , according to JPMorgan. The bank reiterated its overweight rating on the tech giant and raised its price target for the stock to $315 from $305 ahead of Apple's fiscal first-quarter earnings report, due out on Thursday. JPMorgan's revised forecast implies upside of 27% from here. Shares of Apple have added 11% over the past 12 months, while the S & P 500 is up 13.4% in that time. Its recent underperformance has opened up an attractive entry point, wrote JPMorgan analyst Samik Chatterjee. AAPL 1Y mountain AAPL 12M chart "We believe that positive data points in relation to robust iPhone 17 demand have been overshadowed by investor concerns in relation to gross margin impact from the unprecedented rise in memory costs, potential price elasticity concerns for iPhone demand, as well as modest concerns from softer intra-quarter data points in relation to App Store Services growth," he wrote. "However, we see a positive set up for the shares heading into F1Q26 (Dec-end) earnings print as AAPL shares are trading at 30x NTM P/E, below the peak multiple that is typical for the shares heading into a key iPhone product cycle (previous peak of ~32x into 5G cycle), in combination with the modest upsides in relation to both F1Q26 print and the F2Q26 outlook," he added. Chatterjee thinks that strong iPhone 17 demand, alongside lower operating expenses, will result in Apple reporting an earnings and revenue beat this Thursday. He sees the same for the iPhone maker's quarter ending in March. The analyst also believes margin pressures from higher memory costs will become more "limited," while operating expenses for the company's fiscal first-quarter will track lower than guidance. Chatterjee added that while he expects Apples Services revenue to come in at 7% year-over-year growth on Thursday, below guidance of 14%, the company has "multiple levers" beyond the App Store that could help drive stronger growth over time.
