Morgan Stanley Trims Apple Price Target Amid iPhone Pricing Pressure
Morgan Stanley has trimmed its price target for Apple Inc. (AAPL) to $355 from $360, citing pressure on average selling prices and gross margins due to the new iPhone lineup's pricing strategy.
The investment bank maintains an Overweight rating for Apple shares, which have surged over 30% in the past six months despite barely moved profit estimates.
The analysts pointed out that while Apple's product pipeline is among the most compelling in more than a decade, the iPhone launch did little to alter the earnings trajectory. With shares trading at $333 and a market capitalization of $4.86 trillion, the valuation now sits above what InvestingPro estimates as fair value.
Morgan Stanley expects Apple to deliver earnings of approximately $10 per share in fiscal 2027 and close to $11 in fiscal 2028, roughly 0% to 3% above market consensus.