Melius Raises Apple (AAPL) PT to $260, Cites Upcoming iPhone Cycles

Apple Inc. (NASDAQ:AAPL) is one of the 10 AI Stocks Making Waves on Wall Street. On August 8, Melius analyst Ben Reitzes raised the price target on the stock to $260.00 (from $240.00) while maintaining a Buy rating.

The firm is optimistic about the upcoming iPhone product cycles. It also believes that Siri AI concerns are overblown.

“Apple’s stock has reacted nicely to tariff news, but we see focus starting to move toward new products and systematic increases in value for iPhones that drives growth for the next 3+ years. We raise our FY26 EPS estimate 12 cents due to higher gross margins and modestly raise FY27 EPS. Our target adjusts to $260, and we think concerns about the Siri delay are overblown since Apple isn’t losing share. Reiterate Buy.”

Melius is optimistic that a new iPhone product cycle starting in September will likely improve product mix. This will in turn boost growth in high single digits during some quarters.

“We are optimistic that our iPhone estimates can be conservative based on new product cycles that include an “iPhone Air” this September, a foldable model in FY26 and the iPhone 20 line-up in late FY27 (20th year anniversary models). Luckily for Apple, its iPhone base doesn’t seem to care about the Siri/AI delays, and we see no evidence of real switching.”

With more iPhone catalysts, expensive models such as foldables will likely help increase total revenue.

“The iPhone has more catalysts in 2026 with the introduction of a foldable model that should be priced around $2,000 and then the iPhone 20 (“20th anniversary”) cycle in 2027. As foldables “mix in” there can be big revenue growth even on flat units.”

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

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Disclosure: None.