Evercore reiterates ‘Outperform’ rating on Apple stock with $250 target price

On August 22, 2025, Evercore ISI reaffirmed its “Outperform” (Buy) rating for Apple stock, spotlighting the recent price increases for Apple TV+ as a strategic move.
Apple TV+, a key component of Apple’s services segment, has seen its subscription cost rise from $9.99 to $12.9 in the U.S, a decision analysts view as balancing profitability with customer retention.
The firm believes the price adjustment, while modestly boosting services revenue, primarily aims to reduce subscriber churn.
Apple likely pairs price hikes with investments in premium content, such as high-profile shows or exclusive films, reinforcing Apple TV+’s value proposition. This discourages subscribers from canceling, as they perceive the service as worth the higher cost.
Apple’s services, including Apple TV+, are deeply integrated into its ecosystem (iPhone, iPad, Mac). A modest price increase maintains affordability for loyal Apple users, who are less likely to churn due to the convenience of bundled services like Apple One. In fact, the Apple TV+ price increase may lead to users upgrading to Apple One subscriptions.
Evercore ISI maintains its $250 price target, reflecting confidence in Apple’s broader services ecosystem.
MacDailyNews Note: Evercore ISI notes that the Apple TV+ price hike aligns with Apple’s goal of sustaining double-digit services growth, provided its licensing agreements remain stable. The services division, which includes Apple Music, iCloud, Apple Pay, and Apple TV+, continues to be a critical growth driver for the company.

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