Jefferies upgraded Apple Inc. (AAPL) from Underperform to Hold, raising the price target to $188.32 from $170.62, citing strong iPhone sales and potential upside in the June quarter. The firm highlighted a 15% year-over-year increase in iPhone sales, the strongest growth since Q3 2021, driven by tariff-related pull-in demand and a recovery in the Chinese market. Jefferies expects June quarter revenue and earnings per share (EPS) growth of approximately 8% and 10%, respectively, surpassing consensus estimates by about 5% and 9%. However, the analyst noted flat iPhone growth in the second half of 2025 and risks to services revenue. Additionally, Jefferies anticipates a $50 price increase for three of the four iPhone 17 models, influenced by tariffs imposed on Chinese imports and cost pressures. U.S. telecom companies reported around 22% growth in equipment sales in the second quarter, the highest in six quarters, supporting the strong demand outlook. Despite the upgrade, Jefferies remains cautious about the impact of artificial intelligence on Apple's business. Following the upgrade, Apple shares showed modest gains and a modestly bullish options sentiment.