Morgan Stanley Trims Apple Target Price Amid iPhone Pricing Pressures

Morgan Stanley has adjusted its target price for Apple Inc. (AAPL) from $360 to $355, maintaining an 'overweight' rating. The reduced estimate comes as a result of lower-than-expected pricing for the new iPhone, impacting average selling prices and profit margins.

Despite a 30% increase in AAPL's stock price over the past six months, limited changes in earnings forecasts have constrained further valuation upside. The current stock price of $330.77 is 15.1% higher than its GF Value of $287.44, indicating potential overvaluation.

AAPL's strong profitability and growth metrics are reflected in its GF Score of 96/100, with high ranks in profitability and growth. However, the company's financial strength rank is lower, suggesting vulnerabilities that investors should consider.