Morgan Stanley Cuts Apple Price Target Amid AI Concerns
Apple's stock price declined by about 0.8% in trading on Thursday after Morgan Stanley trimmed its price target for the tech giant from $360 to $355, while maintaining an Overweight rating.
The brokerage firm said that agentic artificial intelligence represents both a potential emerging risk and an opportunity for Apple, with its product roadmap remaining among the most exciting in more than a decade.
However, Morgan Stanley's earnings outlook for Apple changed little following the latest iPhone launch, and the firm modestly raised its revenue estimates due to stronger iPhone production, higher Mac revenue, and pricing benefits in Apple's Services business.
The September quarter could benefit from resilient iPhone production, stronger Mac revenue, Services pricing tailwinds, and tariff refunds, but the December quarter presents a more mixed picture, with projected iPhone shipments potentially too high.