Apple Inc. stock reached its initial 2025 peak on Monday following Loop Capital's upgrade from hold to buy, joining other firms highlighting favorable iPhone sales patterns.

This upward momentum reflects indicators of better-than-anticipated demand for the company's newest iPhone models, fueling optimism about a potentially significant upgrade cycle. Weekend research from Counterpoint showed the iPhone 17 lineup exceeded iPhone 16 sales by 14 percent during their first ten days of availability in US and Chinese markets.

Loop isn't alone in growing more bullish on Apple's outlook. Evercore ISI included the stock on its tactical outperform roster, noting that iPhone demand data indicates this cycle may surpass typical refresh patterns.

Also Read: Google to Invest $10 Billion in Data Center in South India

Ben Reitzes from Melius Research believes Apple is regaining momentum, stating the company aims to prove doubters wrong. He highlighted encouraging developments in China and overall strength in newer models, with future product launches expected to provide further growth drivers.

Also Read: Into the 25 Years Memory Lane of Google

Nevertheless, some question whether iPhone 17's early performance supports Apple's current market value. The stock commands over 32 times projected earnings, significantly above its decade-long average of 22 times. Apple also carries a premium versus the Nasdaq 100 and ranks as the priciest Magnificent Seven member except for Tesla Inc.

Apple continues receiving less analyst support compared to other tech giants. Despite Loop's positive revision, only 58 percent of Bloomberg-tracked analysts advocate purchasing the shares, representing the lowest percentage among Magnificent Seven stocks excluding Tesla.

Also Read: Top Five Ear-Friendly TWS Earbuds Under 5000 in October 2023

Jefferies' Edison Lee, among just four analysts with sell ratings on Apple, warned over the weekend that iPhone 17 sales momentum appears to be declining. Lee recently downgraded the stock to underperform, arguing that enthusiasm for a possible foldable iPhone is excessive given its expected high cost and potential impact on Pro Max sales.