- Morgan Stanley maintained an Overweight rating on Apple but lowered its price target to $355 from $360, citing squeezed profit margins from higher memory chip costs and a smaller-than-expected $100 iPhone Pro price increase versus the $150-$200 expected.
- Morgan Stanley raised its Apple revenue forecasts on stronger iPhone shipments, Mac sales, and Services pricing, and praised the product roadmap under new CEO John Ternus.
- Daniel Ives issued a Buy rating and $400 price target on Apple, implying roughly 19.4% upside, while the 44-analyst average target of $328.09 sits about 2% below the $334.95 share price.
- The bull case rests on turning Siri and AI feature adoption into recurring services revenue and upgrade demand, with regional availability, actual usage, and future pricing determining whether a $400 target holds.
- UBS reiterated a Neutral rating on Apple, leaving Wall Street split ahead of the upcoming earnings report between bulls on unit sales and AI-driven upgrades and bears on profitability and cannibalization from products like the foldable Duo.
Quotes
“Morgan Stanley maintained its Overweight rating on Apple but lowered its price target to $355 from $360, despite praising the company's product roadmap under new CEO John Ternus and raising revenue forecasts for stronger iPhone shipments, Mac sales, and Services pricing”
“This tension highlights a "tug of war" between bulls, who expect strong unit sales and AI-driven upgrades to prevail, and bears, who worry about profitability challenges and potential cannibalization from new products like the foldable Duo”
“Apple's AI advantage starts with distribution. It can put new features directly into devices customers already own. Turning that reach into revenue is the harder job.”
“The broader analyst crowd is less bullish. Stock Analysis puts the average target from 44 analysts at $328.09, about 2% below that share price.”