BofA Bullish on Apple: $325 Price Target on Strong App Store Growth and AI Potential

Based on my research, here is a comprehensive analysis of BofA’s bullish outlook on Apple (AAPL) ahead of the company’s upcoming earnings report, along with the key risks that could undermine this positive perspective.

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On January 6, 2026, BofA Securities analyst

reiterated a on Apple stock with a [1]. This valuation is based on a price-to-earnings multiple of [1].

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BofA highlighted several positive App Store metrics that demonstrate robust Services segment growth:

• Q1 2026 App Store revenues reached $8.6 billion
  , representing a
  6.8% year-over-year increase
  based on SensorTower developer data[1]
• Total iPhone and iPad downloads grew 1.5% YoY to 8.9 billion
  during the same period[1]
• Dollars per download increased 5.3% YoY to $0.97
  , indicating improving monetization[1]
• December 2025 global App Store revenue grew 5.7% YoY
  , outpacing the 3.1% YoY download growth rate[1]

BofA cited Apple’s continued commitment to

as a key positive factor[1]. Apple’s ongoing stock buyback programs and dividend payments remain attractive to income-focused investors.

The analyst emphasized Apple’s positioning as a potential

—referring to on-device artificial intelligence capabilities[1]. This includes the company’s Apple Intelligence initiative and the anticipated “Siri 2.0” next-generation AI platform[2].

BofA highlighted

[1]. This includes:

• The anticipated launch of Apple’s first foldable iPhone[3]
• A staggered iPhone launch schedule designed to smooth revenue and supply chain volatility[3]
• Continued momentum in key markets including a rebound in China[2]

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BofA explicitly acknowledged

, attributing this to[1]:

• Tougher year-over-year comparisons
• Slower economic activity
  in the region
• Potential lower commission rates

This is particularly significant given that

[4]. Any sustained weakness in this critical market could materially impact Apple’s financial performance.

BofA noted that

, dating back to fiscal year 2023[1]. A continued deceleration in Services growth could undermine a key pillar of Apple’s profitability.

Apple faces

including Huawei, Xiaomi, and Oppo[4]. This competitive pressure poses risks to iPhone market share in what remains Apple’s second-largest geographic market.

Market concerns persist regarding

in this critical technological frontier[4]. Investor skepticism about Apple’s AI monetization roadmap could limit upside.

According to Seeking Alpha analysis, Apple’s valuation remains

, representing a despite a relatively weaker overall earnings growth profile[3].

Increased demand for AI computing data centers has led to

, putting pressure on Apple’s gross margins[4].

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“While global growth was solid in December, we note China experienced weaker y/y performance which was likely affected by tougher comps, slower usage (weaker overall economy), and possible lower commission. Maintain Buy on strong capital returns, eventually leader at AI at the edge & optionality from new products/markets.”[1]

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BofA maintains a

driven by solid App Store trends, strong capital return programs, and long-term AI and product optionality. However, the analyst acknowledges meaningful risks from . The $325 price target implies meaningful upside from current levels, reflecting confidence in Apple’s ability to navigate these challenges while capitalizing on emerging opportunities in AI and new product categories.

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[1] Yahoo Finance - “BofA Reiterates Buy on Apple (AAPL) With $325 Target” (https://finance.yahoo.com/news/bofa-reiterates-buy-apple-aapl-082011878.html)

[2] Financial Content/MarketMinute - “Apple Reclaims China as ‘Siri 2.0’ Fuels 2026 Bull Run” (https://markets.financialcontent.com/wral/article/marketminute-2025-12-25-the-great-wall-of-intelligence-apple-reclaims-china-as-siri-20-fuels-2026-bull-run)

[3] Seeking Alpha - “Apple 2026: Major Change Expected” (https://seekingalpha.com/article/4857828-apple-2026-major-change-expected)

[4] Trefis/Forbes - “Why Apple (AAPL) Stock Moved” (https://www.trefis.com/data/companies/AAPL?source=forbes&from=AAPL-2026-01-08)