Jim Cramer said Wednesday he’s feeling even better about Apple after a new piece of Wall Street research. The news Bernstein analysts led by Toni Sacconaghi told clients that Apple is still their best idea, laying out a clear path to more upside for the iPhone maker’s shares. In fact, Bernstein’s bull case sees the stock surging to $290 a share in fiscal year 2026, implying 27% upside from Tuesday’s close. Apple is currently in the first quarter of its fiscal 2025. “We view Apple as a quality compounder, with mid-single digit revenue growth, improving margins, disciplined capital return, and double-digit [earnings per share] growth,” wrote the analysts, who reiterated their buy-equivalent rating. Additionally, Bernstein argued that Apple’s stock is less expensive than it appears thanks to the way Apple manages its inventory and payments to suppliers — basically, it collects cash from customers before it needs to pay its device manufacturers, creating what is known as a negative cash conversion cycle. That’s a quality dynamic that not every company has. Analysts also cited catalysts such as generative artificial intelligence adoption , which could lead to increased revenue opportunities and an accelerated device upgrade down the line. “Investors have fared well by maintaining AAPL as a core holding, and adding to positions on pullbacks,” Bernstein wrote. Shares of the iPhone maker are down 1.3% Wednesday as Nvidia’s decline weighs on the broader market. Big picture Bernstein’s note wasn’t the only positive news investors received this week. Apple’s App Store revenues increased 2.6% in October compared with September — an acceleration from September’s 2.3% month-over-month decline. That’s according to a JPMorgan note Tuesday, which cited data from market research firm Sensor Tower. “We view the latest monthly revenue trends for the App Store as supportive of the robust forecasts for Apple’s Service revenue for F1Q25,” wrote the JPMorgan analysts, who maintained their buy-equivalent rating on the stock. Others on the Street shared more cautious commentary on Apple. UBS said Tuesday that demand for new iPhone 16 models has been “relatively muted” since its release in September. “We think that there is limited upside to our 78M sell-in unit estimate in the Dec-24 quarter even as consumers familiarize themselves with Apple Intelligence,” analysts at the firm wrote. UBS maintained its hold-equivalent rating on the stock. AAPL YTD mountain Apple (AAPL) year-to-date performance Bottom line Sacconaghi’s positive call on Apple affirmed the Club’s long-held “own it, don’t trade” thesis. “This piece makes me feel more confident [about Apple],” Jim said Wednesday. He added that the Bernstein research shows investors that “you don’t sell the stock even if the quarter may not be up to snuff, even if Christmas may not be up to snuff with iPhone 16 [sales].” Meanwhile, JPMorgan provided a timely reminder of the importance of Apple’s high-margin services business, which hit a $100 billion run rate in its latest quarter . As for the more bearish commentary, Jim said that iPhone sales can pick up as the tech giant expands further into emerging markets. China has been Apple’s second-largest market, but the region is facing plenty of headwinds. These include softening iPhone demand on more domestic competition, and Donald Trump’s proposed tariff increases . But Apple’s pivot into other markets like India, the Philippines and Indonesia should eventually offset those risks. “They are transitioning in a very deft way from making China by far their biggest market to India,” Jim said. “And it’s going to take a while, but there’s no doubt in my mind that they understand India better than any American company… I’m very positive on that.” (Jim Cramer’s Charitable Trust is long AAPL, NVDA. See here for a full list of the stocks.) As a subscriber to the CNBC Investing Club with Jim Cramer, you will receive a trade alert before Jim makes a trade. Jim waits 45 minutes after sending a trade alert before buying or selling a stock in his charitable trust’s portfolio. If Jim has talked about a stock on CNBC TV, he waits 72 hours after issuing the trade alert before executing the trade. THE ABOVE INVESTING CLUB INFORMATION IS SUBJECT TO OUR TERMS AND CONDITIONS AND PRIVACY POLICY , TOGETHER WITH OUR DISCLAIMER . NO FIDUCIARY OBLIGATION OR DUTY EXISTS, OR IS CREATED, BY VIRTUE OF YOUR RECEIPT OF ANY INFORMATION PROVIDED IN CONNECTION WITH THE INVESTING CLUB. NO SPECIFIC OUTCOME OR PROFIT IS GUARANTEED.
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Jim Cramer said Wednesday he’s feeling even better about Apple after a new piece of Wall Street research.
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