Apple's Revenue Growth Outlook Revised by Morgan Stanley
Morgan Stanley has revised its outlook on Apple Inc.'s (AAPL) latest product cycle, suggesting that it could support revenue growth. However, the firm's analysts also caution that lower iPhone average selling prices and higher memory costs may offset some of these gains.
In a recent report, Morgan Stanley modestly raised its revenue estimates for Apple following the company's fall launches. The firm cited stronger iPhone builds, as well as upside from Mac and Services pricing, as factors contributing to this increase. However, it also noted that lower average selling prices for iPhones could partially counterbalance these gains.
The firm has lowered its price target for AAPL stock to $355 from $360 while maintaining an 'Overweight' rating. Additionally, Morgan Stanley sees agentic AI as both a potential emerging risk and an opportunity for Apple.