Shares of iPhone and iPad maker Apple (NASDAQ:AAPL) jumped 2.6% in the morning session after Jefferies upgraded the stock following a report indicating strong iPhone sales.

Jefferies analyst Edison Lee upgraded Apple to ‘Hold’ from ‘Underperform’ and raised the price target, citing data from research firm Counterpoint. The data revealed that iPhone sales volume surged 15% year-over-year in the first two months of the June quarter, the most robust growth since the third quarter of 2021. Lee anticipates that this momentum, partly driven by market share recovery in China and tariff-related pull-in demand, could lead to an 8% rise in revenue and a 10% increase in earnings per share (EPS) for the quarter.

After the initial pop the shares cooled down to $210.29, up 1.2% from previous close.

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Apple’s shares are extremely volatile and have had 32 moves greater than 2.5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.

Apple is down 13.8% since the beginning of the year, and at $210.29 per share, it is trading 18.8% below its 52-week high of $259.02 from December 2024. Investors who bought $1,000 worth of Apple’s shares 5 years ago would now be looking at an investment worth $2,310.

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