UBS Reiterates Neutral on Apple (AAPL) as App Store Growth Slows

Apple Inc. (NASDAQ:AAPL) is one of the Hot AI Stocks on Wall Street’s Radar. On December 9, UBS analyst David Vogt reiterated a Neutral rating on the stock with a $280.00 price target. Firm analysts hold a neutral stance on the stock due to slowing App Store growth momentum and tough December comps despite FX tailwind.

Based on data from Sensor Tower, Apple’s App Store revenue in November grew an estimated 6% on a reported basis. This growth follows a growth of roughly 7% and 9% in September and October, respectively.

On a Foreign Exchange Neutral basis, App Store revenue increased an estimated 5% year-over-year since currency was a tailwind. The firm further noted that App Store faces an estimated 12% comparison hurdle in December. This is lower than the mid-teens comparisons from recent months but is still “not an easy hurdle in our view.”

“On a QTD basis, reported App Store is tracking at ~7% (~6% FXN). Therefore, we estimate that reported App Store will have to grow in the mid-teens for Dec-25 quarter growth to reach at least double-digits.”

Apple is a technology company known for its consumer electronics, software, and services.

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