Morgan Stanley Lowers Apple Price Target Amid Cost Pressures

Morgan Stanley has lowered its price target for Apple stock from USD 360.00 to USD 355.00 while maintaining an Overweight rating. The adjustment comes despite Apple's strong fiscal third-quarter performance in 2026, which saw revenue grow 16.00 percent year-over-year to USD 109.4 billion. Diluted earnings per share increased 29.00 percent to USD 2.02, and the gross margin stood at 50.10 percent. Growth was driven by key product lines, with iPhone revenue up 22.00 percent to USD 54.3 billion, Mac revenue increasing 29.00 percent to USD 10.4 billion, and Services revenue advancing 12.00 percent to USD 30.7 billion.

The reduction in the target price was attributed to higher memory costs and lower iPhone average selling prices, which offset some of the earnings benefits. Morgan Stanley's analysis emphasized the importance of converting product demand into profit, highlighting the impact of cost pressures on valuation. The firm's revenue view was supported by stronger iPhone builds, Mac upside, and Services pricing.

Apple's stock was trading at EUR 296.25 at Lang & Schwarz on October 6, 2026, down 0.12 percent from the prior close of EUR 296.60. The Nasdaq listing closed at USD 332.89 on October 5, 2026, placing it 3.60 percent below its 52-week high of USD 345.34. The company's next earnings release is scheduled for October 29, 2026, which will provide further insights into revenue, margins, and demand.

With a market capitalization of USD 4.9 trillion as of October 5, 2026, Apple remains a dominant player in the technology sector. Investors will be watching closely to see how the company navigates cost pressures and maintains its growth trajectory in the coming quarters.