Wells Fargo has raised its price target for Apple stock from $245 to $290, on what is believed will be a blockbuster fourth quarter because of the iPhone 17, and prospects for Apple Intelligence in the future.
Ahead of financial results announcements, analysts are keen to offer their opinions on what they believe Apple will report. In the case of Wells Fargo, it believes Apple has a lot to offer investors in the coming quarters.
In a note to investors released on October 21, Wells Fargo maintained its Overweight rating for Apple's stock. However, it also significantly increased its price target for the company's shares.
While it had previously held a price target for AAPL of $245, that figure has now shot up to $290. Such an increase is considered a bullish move and a bet that Apple will do well in the near future.
At the same time, the firm expects for Apple to report a quarterly earnings per share of $1.79, as well as quarterly revenue of $102.4 billion.
If accurate, this would be Apple's first fourth-quarter results in the $100 billion range. Its previous Q4 highest was in 2024, at $94.9 billion.
An AI play
The main focus of the note on Apple is on its somewhat faltering AI strategy, which includes the long-delayed overhaul of Siri as part of Apple Intelligence. While it is seemingly behind its rivals, Wells Fargo is confident that Apple could turn it around.
Apple's strong ecosystem and intuitive design makes the company "well-positioned" to bring more AI features into its devices. The note proposes Apple could "actually make AI mainstream."
Apple has introduced many smaller AI elements in its operating systems in September, including live translation and various messaging and call features. With higher than expected quarterly results, Wells Fargo believes there will be a surge of investor confidence in Apple's ability to maintain double-digit Services revenue.
Apple will be announcing its Q4 2025 results on October 30, with an analyst conference call following after the release of results.
