Apple (AAPL) Delivers Solid Beat — Jefferies Softens Bearish Stance

Apple Inc. (NASDAQ:AAPL) is one of the AI Stocks on the Market’s Radar. On October 31, Jefferies upgraded the stock rating from “Underperform” to “Hold” while raising its price target to $246.99 from $203.07.

The rating upgrade follows Apple’s September quarter revenue growth of estimated 8%, topping both Jefferies estimates and consensus expectations by 6% and 1% respectively.

The iPhone’s revenue growth was weaker at 6%. However, other products, including Mac and iPad outperformed expectations. The company’s gross margin of 47.2% beat estimates by an estimated 0.5% even though it faces $1.1 billion in tariff costs.

Looking ahead, it has guided for 10%-12% revenue growth in the December quarter, 6% above consensus forecasts.

According to the firm, estimates are “up only slightly” because it assumes a $100 price increase for the iPhone 18 to cover higher component costs.

This will likely limit volume growth, it noted. The firm also believes that product mix will likely negatively impact margins.

“AAPL’s Sep Q rev grew ~8%, 6%/1% > JEFe/cons. iPhone rev growth weaker at 6%, but other products (Mac & iPad) beat. GM at 47.2% is ~0.5% beat including US$1.1bn tariff. It guides 10%–12% rev growth in Dec Q (6% > cons). JEFe is up only slightly, as a US$100 price hike assumed for iPhone 18 to cover higher component costs will limit vol growth, and product mix likely –ve for margin. But strong 1QFY26 and hope for 18 Fold would likely limit downside. U/G to HOLD.”

Apple is a technology company known for its consumer electronics, software, and services.

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