Apple has been outperforming. But, the good times could soon end, Daiwa says

Apple achieved record growth in its latest fiscal year, driving its shares upward. However, Daiwa Capital Markets warns that this momentum could soon falter. The investment firm maintains an outperform rating on the iPhone maker and has raised its 12‑month price target to $375 from $335. This new target, however, suggests only about 9% upside from Thursday’s close. In a note to clients on Thursday, analyst Louis Miscioscia questioned the sustainability of current gains, asking how long the good times at Apple could persist. He noted that conditions might remain stable until April 27 due to backorder and channel fill, but growth could become more challenging afterward due to tighter competition and rising memory costs. Apple has been on a rapid rise in 2026, with its stock up nearly 27% year to date thanks to strong demand for the iPhone 17. The company reported $478 billion in revenue for the fiscal year, a roughly 15% increase year over year. Following the earnings release, shares edged down, reflecting concerns about macroeconomic headwinds. Apple faces challenges from soaring memory costs and supply constraints for critical hardware components, which could cap growth in 2027 and pressure the stock. In his analysis, Miscioscia highlighted that while iPhone releases remain healthy, the new Duo processor appears supply-constrained. He also noted that Apple has not delivered two consecutive years of double‑digit growth since fiscal 2015. Daiwa’s assessment aligns with broad market sentiment. Of the 43 analysts covering Apple, 25 have maintained a buy or strong buy rating, according to LSEG data.

Source link