JPMorgan lowered its 12-month price target on Apple (NASDAQ: AAPL) to $245 from $270 while maintaining an Overweight rating. The firm pointed out that although recent tariff exemptions offer some relief, investor sentiment remains cautious due to recent developments.
The U.S. administration’s decision on April 11 to exclude smartphones and PCs from new reciprocal tariffs eased immediate concerns over cost headwinds for Apple and the broader hardware sector. The move is expected to help refocus investor attention on Apple’s medium-term growth drivers, including artificial intelligence integration and a potential upgrade cycle driven by the aging installed base.
However, JPMorgan highlighted that the market may not fully embrace a bullish outlook in the short term, as recent volatility and policy uncertainty continue to weigh on sentiment. While the exemption helps reduce downside risks, especially for near-term earnings, broader confidence in upside catalysts—particularly those tied to AI—will likely take more time to build.
JPMorgan continues to view Apple (NASDAQ: AAPL) favorably over the medium term, pointing to strong momentum in its Services business and margin expansion potential as key earnings growth drivers. The firm also sees longer-term upside potential from an AI-led product cycle, particularly with the anticipated launch of the iPhone 17.
Despite the lowered target, the firm’s Overweight stance reflects confidence in Apple’s earnings resilience and its strategic positioning within both hardware and services segments.
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