Morgan Stanley Lowers Apple Price Target as Agentic AI Concerns Rise
Apple's stock price declined by about 0.8% on Thursday, following Morgan Stanley's decision to lower its price target for the iPhone maker from $360 to $355.
The brokerage maintained an Overweight rating on Apple, citing both 'potential emerging risks' and opportunities presented by agentic artificial intelligence (AI).
Morgan Stanley analysts believe that Apple's product roadmap remains exciting, but earnings outlook changed little following the latest iPhone launch.
The firm modestly raised its revenue estimates after Apple's fall product launches, citing stronger iPhone production, higher Mac revenue, and pricing benefits in Services business. However, these gains are expected to be offset by lower iPhone average selling prices and higher memory costs.