• Evercore ISI raises Apple price target to $365 from $330, with a bull case of $500, maintaining an Outperform rating.
  • Analyst Amit Daryanani argues investors overestimate short-term iPhone and AI risks while underestimating long-term Services growth, premium iPhone demand, and AI monetization.
  • The firm sees Apple delivering low-to-mid teens EPS and free cash flow growth even with modest iPhone unit growth.

The Bull Case for Apple

Evercore ISI has turned more bullish on Apple Inc., lifting its price target to $365 from $330 and outlining a bull case that could send shares to $500. Analyst Amit Daryanani said in a note to clients that the market is too focused on near-term headwinds from iPhone demand and artificial intelligence adoption, missing the bigger picture.

"Investors are overly concerned about iPhone unit growth and AI competition, but Apple's long-term earnings power comes from Services, pricing power, and eventual AI monetization," Daryanani wrote. He believes Apple can generate low-to-mid teens compound annual growth in EPS and free cash flow even with only modest iPhone volume increases, driven by higher average selling prices, Services expansion, and aggressive capital returns.

Services and AI as Catalysts

The analyst highlighted several underappreciated strengths: high-margin Services revenue, which continues to grow at a double-digit clip; premium iPhone demand, including potential upside from a foldable device; and Apple Intelligence monetization opportunities. Daryanani also noted Apple's strong execution amid supply chain disruptions and its substantial share buyback program.

Evercore's bull case assumes accelerating Services growth and successful integration of AI features into the product ecosystem, which could drive multiple expansion. The firm kept its Outperform rating, citing Apple's ability to compound earnings regardless of iPhone cycle variability.

Market Context

Apple shares have rallied alongside broader tech momentum, with several other firms raising targets in recent weeks. The bullish sentiment reflects expectations for a strong iPhone upgrade cycle and growing visibility into AI-related revenue. Daryanani's note did not mention any near-term catalysts but emphasized that the risk-reward is skewed to the upside for long-term investors.

An Apple spokesperson declined to comment on the analyst report.

Correction: A previous version of this article misstated the bull case target. The correct figure is $500.