JPMorgan raised its price target on Apple to $315 from $305 on Monday, while maintaining an Overweight rating on the stock.

Apple shares jumped 2.1% in morning trading.

The firm noted that Apple shares have underperformed the S&P 500 Index over the last two months, declining 13% compared to the index’s 1% gain. This underperformance comes despite positive indicators regarding robust iPhone 17 demand, which JPMorgan believes has been overshadowed by investor concerns about gross margin impacts from rising memory costs and potential price elasticity issues.

JPMorgan expects iPhone revenues to exceed consensus expectations, with forecasted 16% growth potentially delivering Apple’s highest iPhone revenue growth since September 2021. The firm also anticipates limited margin pressures from higher memory costs, citing Apple’s long-term supplier contracts and scale advantages. Apple reported revenue growth of 6.43% in the last twelve months, reaching $416.16 billion, with a healthy gross profit margin of 46.91%.

For the fiscal first quarter of 2026, JPMorgan projects App Store revenues to grow approximately 7% year-over-year, which is softer than the total Services growth guidance of about 14%. However, the firm believes Apple has multiple levers to deliver robust Services growth beyond the App Store. Investors should note that Apple is scheduled to report earnings in just 3 days on January 29, which could provide further clarity on these projections.