Apple received an upgrade to Buy from Rothschild & Co Redburn on Monday, with the firm raising its price target to $400 from $260 as the company prepares to launch a foldable iPhone and reworks its artificial intelligence strategy.
Analyst Timm Schulze-Melander highlighted Apple’s planned September introduction of an iPhone Ultra priced at $2,199, an 83% premium to the iPhone 17 Pro Max. The firm forecasts 14 million iPhone Ultra units sold in fiscal 2027, with 4 million expected to cannibalize existing iPhone sales. By June 2027, the foldable device could boost iPhone average selling prices by 11%, according to the projection. The report also noted that foldable smartphones historically capture 65-75% of incremental unit growth in their categories, drawing parallels to AirPods and Apple Watch launches.
Apple’s AI strategy, dubbed "Fast Follower 2.0," aims to reduce reliance on Google’s services, including a custom version of Google’s Gemini AI model costing roughly $1 billion annually. The company also receives $27.5 billion per year from Google for search placement on its devices. The analyst described the prior relationship between Apple and Google as "genuinely acrimonious" and suggested Apple may adopt open-source AI models such as Nvidia’s Nemotron to diversify its approach.
Wolfe Research maintained a bullish stance on AI semiconductor stocks ahead of earnings, naming Nvidia its top pick. Analyst Chris Caso pointed to multi-gigawatt agreements signed over the past one to two years as evidence of sustained demand. Marvell Technology’s new deal with Google was described as potentially transformational, with a warrant profile implying $120 billion in incremental revenue potential through fiscal 2033.
Elsewhere, Bernstein upgraded Analog Devices to Outperform from Market Perform and raised its price target to $465 from $430. The firm cited better-than-expected third-quarter results, with revenue of $4.022 billion and earnings per share of $3.45, both topping estimates. For the fourth quarter, Analog Devices guided revenue to $4.3 billion and EPS to $3.86, while raising gross margin guidance to around 74%, up from prior expectations of 72.3%.
Goldman Sachs reiterated a Buy rating on MongoDB ahead of its fiscal second-quarter results on September 1, citing potential upside in Atlas revenue growth to 29% or more for the quarter. The bank also forecast fiscal third-quarter growth in the mid-20s or higher, above Street estimates of 22%. MongoDB’s shares have gained over 40% in the past month, trading at roughly 9 times fiscal 2028 enterprise value-to-sales, a discount to peers such as Snowflake and Datadog.
Deutsche Bank downgraded cybersecurity firm SentinelOne to Hold from Buy but lifted its price target to $24 from $17. The firm noted SentinelOne’s stock has surged about 90% since April lows, while the largest cybersecurity platforms trade at premium valuations of around 4 times growth on 2027 free cash flow multiples.
