• Bernstein SocGen Group raised its Apple (AAPL) price target to $340 from $325, maintaining an Outperform rating.
  • The upgrade is driven by expectations of a strong iPhone 17 cycle, better-than-expected revenue and profits, and the upcoming Apple Intelligence launch as a key catalyst.
  • Rising memory costs are expected to pressure margins modestly, but Apple is likely to offset this through price increases, with FY26 and FY27 EPS estimates raised to $8.72 and $10.35.

Bernstein SocGen Group has increased its price target on Apple to $340 from $325, according to a note dated February 10, 2026, while keeping an Outperform rating on the stock. The move reflects growing confidence in Apple's near-term trajectory, anchored by what analysts describe as a robust iPhone 17 cycle and revenue projections that have surpassed initial forecasts.

Efforts to quantify the impact of rising memory prices have hit a snag for some tech firms, but Bernstein believes Apple will largely mitigate these cost pressures through strategic price hikes on its devices. "The impact on profits should be modest," the firm noted, emphasizing that supplier agreements and pricing power provide a buffer. This assessment comes as NAND and chip costs creep upward industry-wide, though Apple's scale and long-term contracts appear to shield it from severe margin erosion.

Without a strong iPhone cycle, Apple's growth story might falter, but Bernstein's analysis suggests the opposite: the iPhone 17 is poised to drive significant upgrades, particularly when coupled with the launch of Apple Intelligence. This AI integration, which includes enhanced Siri features and ChatGPT partnerships, is viewed as a multi-billion-dollar revenue opportunity over time. "The upcoming Apple Intelligence launch will be the bigger catalyst," the report stated, echoing sentiment from other Wall Street firms that have recently lifted targets.

In parallel, earnings estimates have been revised upward, with FY26 EPS now seen at $8.72 and FY27 at $10.35, up from previous forecasts. These adjustments follow Apple's guidance of 13-16% revenue growth for the second quarter, fueled by iPhone momentum and a rebound in China sales despite competitive pressures from Huawei's price cuts. A person familiar with the matter indicated that internal projections at Apple align with this optimistic outlook, though the company declined to comment specifically on the Bernstein note.

Market reaction has been muted in early trading, with Apple shares hovering near $275, but the stock has surged 3% on similar analyst upgrades in recent weeks amid broader AI and iPhone optimism. Bernstein's target implies a potential upside of over 20% from current levels, placing it above the Wall Street average of $288.55 to $306.89 and in line with bullish calls from firms like Wedbush, which has a $350 target. The consensus rating remains Moderate Buy, with 21 Buy, 12 Hold, and 2 Sell recommendations, according to recent data.

Looking ahead, short-term headwinds from memory costs are expected to be manageable, while long-term prospects hinge on Apple's ability to monetize its ecosystem through services and AI. Bernstein advised investors to buy dips to $220, framing Apple as a "quality compounder" with room for growth. The firm's target has climbed progressively from $195 to $340 over the past year, tracking key catalysts like AI announcements and iPhone supercycles—a pattern reminiscent of prior rallies during WWDC events.

Correction: An earlier version misstated the EPS estimate for FY26; it is $8.72, not $8.75.