Apple's Price Target Cut: Will $355 Be the Ceiling?

Morgan Stanley cut Apple's price target from $360 to $355, citing a strong six-month run but insufficient earnings revision after the iPhone launch. The stock is currently trading below its short-term moving averages, forming an overhead supply zone that buyers need to punch through.

The MACD histogram has printed at zero, indicating directional conviction is absent, while momentum isn't rolling over hard or recovering either. Buyers are hesitating at exactly the wrong time.

Despite Apple's impressive revenue and earnings, with a trailing P/E of 38.89x and forward P/E of 36.82x, the market is pricing it as a premium stock. The company reported an EPS of $2.02 on July 30, beating expectations by 6.88%, but the stock price decreased by 7.35%.

The next test arrives on Oct. 28, when Apple is expected to report earnings for Q4 2026. Services revenue growth in the mid-teens is seen as a key lever for the stock to push higher, with analyst consensus pointing to a Moderate Buy rating and an average 12-month price target of $340.14.