BofA Reiterates Buy on Apple (AAPL) With $325 Target

Core Viewpoint - Apple Inc. is being closely monitored by analysts as a significant player in the AI sector, with a Buy rating from BofA Securities and a price target of $325.00, driven by App Store momentum, strong capital returns, and AI leadership potential [1]. Group 1: App Store Performance - App Store revenues for Q1 2026 reached $8.6 billion, reflecting a 6.8% year-over-year increase based on developer revenue data from SensorTower [2]. - Total downloads on iPhone and iPad platforms grew 1.5% year-over-year to 8.9 billion, marking the slowest quarterly revenue growth in approximately 11 quarters since fiscal year 2023 [2]. - The average revenue per download increased to $0.97, a 5.3% rise, while global App Store revenue grew 5.7% in December, outpacing the 3.1% growth in downloads year-over-year [3]. Group 2: Market Insights - Despite solid global growth in December, China's app market showed weaker year-over-year performance, attributed to tougher comparisons, slower usage due to a weaker economy, and potentially lower commissions [4]. - The firm maintains a Buy rating on Apple due to strong capital returns, AI potential, and opportunities from new products and markets, with a price objective of $325 based on a 32x C27E EPS of $10.11 [4].