Apple Inc. shares surged to their first record of 2025 on Monday, rising as much as 3.1% to $260.20, after Loop Capital upgraded the stock to buy from hold, citing strong early demand for the latest iPhone lineup, Bloomberg reported.

The rise marked a turning point for Apple, which had been a high-profile underperformer among S&P 500 Index stocks earlier this year, falling as much as 31% in April. Since then, the iPhone maker has recovered more than 50%, moving into positive territory for 2025 in late September.

Recent momentum is underpinned by signs that the iPhone 17 series is exceeding expectations. Counterpoint Research analysis showed the new model outsold the iPhone 16 by 14% over the first 10 days of release in the US and China, suggesting that a long-awaited upgrade cycle may finally be underway.

Loop analyst Ananda Baruah said the company was “at the front end of Apple’s long-anticipated adoption cycle,” citing a combination of refresh cycles and demand driven by new design features. He also raised his price target to $315, implying upside of around 25% from Friday’s close.

Other analysts have echoed cautious optimism. Evercore ISI added Apple to its tactical outperform list, noting that the iPhone demand may exceed the typical refresh cycle. Melius Research’s Ben Reitzes said the company was “getting its groove back,” highlighting momentum in China and expectations that upcoming products could provide further catalysts.

However, not all analysts are convinced the early momentum justifies Apple’s valuation. The stock trades at more than 32 times estimated earnings, well above its 10-year average of 22 times, and remains the most-expensive member of the so-called Magnificent Seven outside of Tesla. Just 58% of analysts tracked by Bloomberg currently recommend buying the stock.

Jefferies analyst Edison Lee, one of the few maintaining a sell-equivalent rating, warned that iPhone 17 sales momentum “continues to cool off.” He also cautioned that anticipation for a potential foldable iPhone may be “overdone,” with high pricing likely to cannibalize sales of the Pro Max version.