Morgan Stanley Sticks to Bullish Outlook on Apple Amid Steady iPhone Demand
Morgan Stanley is sticking to its bullish outlook for Apple Inc. (AAPL), reaffirming an Overweight rating and $360.00 price target. The firm cites steady demand for the iPhone 18, with lead times remaining flat year-over-year internationally.
The optimism comes as Apple's stock trades near its 52-week high of $345.34, up 36% over the past six months. However, a closer look at the stock's valuation suggests it may be overvalued relative to its Fair Value, with a P/E ratio of 38.84.
Morgan Stanley's analysis indicates that iPhone 18 Pro lead times are now longer year-over-year in China, standing at 26 days compared to 24 days at this point last year. In contrast, iPhone 18 Pro Max lead times remain shorter year-over-year globally, which the firm attributes to the staggered launch of the iPhone Duo.
The next earnings report is just around the corner, with Apple set to release its results on October 29. Investors will be keenly watching for any signs of weakness in demand or supply chain issues that could impact the company's performance.