Apple Inc. received an upgrade to Buy from Rothschild & Co on Tuesday, with analysts citing the company’s planned entry into the foldable smartphone segment and a strategic pivot in its artificial intelligence approach.
The firm raised its price target to $400 from $260, emphasizing Apple’s upcoming foldable iPhone launch expected in September. Rothschild & Co forecasts sales of 14 million iPhone Ultra units in fiscal 2027, with only 4 million units seen as cannibalizing traditional iPhone sales. The foldable device is projected to carry a price tag of $2,199, an 83% premium over the iPhone 17 Pro Max. Analysts estimate the product could boost iPhone average selling prices by 11% by June 2027, drawing parallels to past successes such as AirPods and Apple Watch, which captured 65-75% of incremental unit growth in their respective categories post-launch.
The upgrade also reflects Apple’s evolving AI strategy, described as "Fast Follower 2.0." Rothschild & Co noted that Apple Intelligence has underwhelmed so far, with the company relying on a custom version of Google’s Gemini at an estimated annual cost of $1 billion. Apple currently receives $27.5 billion annually from Google for search placement on its devices. Analysts suggested Apple could adopt open-source AI models, potentially through a partnership with Nvidia, to reduce its dependency on Google despite a historically strained relationship.
Separately, Wolfe Research reiterated a bullish stance on AI semiconductor stocks ahead of earnings, naming Nvidia Corp. as its top pick. Analyst Chris Caso highlighted strong capital expenditure revisions and supply chain data supporting sustained spending growth. The firm also pointed to large financing deals from Nvidia and Broadcom, which have enabled AI labs with limited access to conventional debt markets to fund multi-gigawatt agreements signed over the past one to two years. Marvell Technology Inc. was highlighted for a newly announced Google deal, with a warrant profile implying $120 billion in potential incremental revenue through fiscal 2033.
Analog Devices Inc. received an upgrade from Bernstein, moving from Market Perform to Outperform with a price target raised to $465 from $430. The upgrade followed better-than-expected third-quarter results, with revenue of $4.022 billion beating estimates of $3.922 billion and earnings per share of $3.45 exceeding the $3.35 forecast. Guidance for the fourth quarter was also raised, with revenue projected at $4.3 billion versus a $4.085 billion estimate and earnings per share guided to $3.86 compared with a $3.55 forecast. Gross margins were raised to around 74%, while operating margins were seen at 52%, both above expectations.
MongoDB Inc. maintained its Buy rating from Goldman Sachs ahead of its fiscal second-quarter results, scheduled for September 1. Analysts projected Atlas revenue growth of at least 29% in the quarter, above the company’s guidance of 26% and Street estimates of 22%. The stock has surged over 40% in the past month, trading at roughly nine times fiscal 2028 enterprise value-to-sales, a discount to peers such as Snowflake and Datadog.
Deutsche Bank downgraded SentinelOne Inc. from Buy to Hold, lifting its price target to $24 from $17. The move followed a roughly 90% rally in the stock since April lows, with the firm noting that cybersecurity peers trade at premium valuations of around four times growth on 2027 free cash flow multiples. The downgrade also comes as the company awaits a new CFO appointment at Netskope.
