Apple(US:AAPL) Benzingaยท2025-10-29 20:58Core Viewpoint - Apple Inc. is experiencing steady stock performance as investors assess long-term growth prospects, particularly with the upcoming iPhone and services momentum, while Bank of America Securities analyst Wamsi Mohan has raised the price forecast from $270 to $320, maintaining a Buy rating [1][2]. Long-Term Revenue and AI Outlook - Mohan has outlined a five-year revenue projection for Apple's products and services, estimating fiscal 2025 revenue at $418 billion and earnings per share (EPS) at $7.41, while also evaluating the impact of AI on revenue and product roadmaps [3][4]. - In the base case scenario, Mohan forecasts 2030 EPS to reach $13.79, indicating a 14% compound annual growth rate (CAGR) over six years, more than doubling the 2024 EPS of $6.29 [4]. iPhone Estimates and Margin Outlook - The analyst has increased iPhone unit estimates due to stronger demand for the iPhone 17 Pro and Pro Max, projecting 57 million units for fiscal Q4 2025 and 80 million for fiscal Q1 2026, compared to previous estimates of 55 million and 78 million [5]. - For fiscal Q4, Mohan anticipates a gross margin of 46.4%, slightly above the guidance range of 46% to 47%, indicating potential upside from a favorable product mix [5][6]. Revenue Growth Guidance - Mohan expects Apple to guide for high single-digit year-over-year revenue growth for the first quarter, with a projected gross margin of 46.3% and guidance possibly ranging from 46.5% to 47.5% [6].