Jefferies has upgraded Apple Inc. (AAPL) from Underperform to Hold, raising its price target to $188.32 from $170.62. The upgrade reflects expectations of strong iPhone sales, with a 15% year-over-year increase marking the strongest growth since the third quarter of 2021. Jefferies anticipates that tariff-driven pull-in demand and a recovery in China will drive June quarter revenue and earnings per share growth of approximately 8% and 10%, respectively, which is about 5% and 9% above consensus estimates. Despite this positive outlook for the June quarter, Jefferies remains cautious about flat iPhone growth in the second half of 2025 and potential risks to services revenue. Following the upgrade, Apple shares showed modest gains, trading slightly higher around $210.19, with options market activity indicating a modestly bullish sentiment. The firm also noted potential upside in the third quarter but expressed caution regarding the impact of artificial intelligence on the stock.