Morgan Stanley bumps Apple stock price target, maintains Overweight rating

The new price target reflects a higher revenue forecast, despite a recent spike in memory costs. Here are the details.

3% up, still Overweight

As reported by Investing.com, Morgan Stanley has bumped its price target for Apple’s stock by 3%, keeping its Overweight rating:

Morgan Stanley raised its price target on Apple to $315.00 from $305.00 on Wednesday, while maintaining an Overweight rating on the stock. (…) The 3% increase in the price target reflects the investment bank’s unchanged 32x multiple applied to its revised fiscal year 2027 earnings per share estimate of $9.83, up from the previous forecast of $9.55.

In the new forecast, Morgan Stanley also expects slightly higher iPhone shipments, despite anticipating that the replacement cycle will extend as users hold onto their phones for about a month longer.

They also predict a 130 basis points drop on Apple’s gross margin, “due to higher memory input costs, offset by a 5% higher revenue forecast that factors in price hikes resulting from commodity cost inflation,” per the Investing.com report.

Finally, Morgan Stanley noted that Apple’s incremental investments into AI will result in elevated operating expenses, “compared to historical seasonality”.

If confirmed, Morgan Stanley’s new price target would represent a 15.8% upside from Apple’s $271.84 closing price following a 1.01% drop today. Apple shares hit a new 52-week high of $288.61 earlier this month, amid renewed optimism around the iPhone 17 upgrade cycle, among other factors.

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