Morgan Stanley lowers Apple price target to USD 355 amid valuation concerns
Morgan Stanley has lowered its price target for Apple stock from USD 360.00 to USD 355.00 while maintaining an Overweight rating, according to Investing.com. The adjustment comes amid a product roadmap that Morgan Stanley still finds attractive, though the earnings outlook has seen minimal changes following the iPhone launch. As of October 2, 2026, the revised target remains USD 22.31 above Apple's Nasdaq price of USD 333.69, representing a 6.69% premium.
The target reduction is significant because Apple's stock is already trading near the upper end of its recent range. This adjustment suggests that near-term valuation debates will focus more on execution and earnings revisions rather than on excitement around new products. Apple reported strong fiscal third-quarter results, with revenue rising 16.40% year over year to USD 109.42 billion and earnings per share exceeding expectations by USD 0.13.
Despite robust revenue growth, the lower price target indicates that analysts are evaluating whether future growth can justify the stock's premium multiple. Apple's net profit margin for the quarter stood at 27.00%, providing a solid earnings base. As of October 2, 2026, Apple's market capitalization was USD 4.9 trillion, with the stock trading 3.38% below its 52-week high of USD 345.34. The next earnings date is set for October 29, 2026.
On October 5, 2026, Apple's stock was trading at EUR 297.05 at Lang & Schwarz, up 0.27% from the prior close. Investors are now faced with a central tension: strong revenue growth versus limited valuation headroom after recent advances.