On Monday, Morgan Stanley (NYSE:MS) maintained its Overweight rating and $273.00 price target for Apple Inc. shares (NASDAQ:AAPL), noting the company's shares are trading at all-time highs.
The firm's analysis highlighted Apple's significant outperformance against the S&P 500 over the last month, attributing this rally to both market factors and investor strategies like short covering. The firm also underscored its positive outlook on Apple's earnings potential, anticipating over $8.50 in earnings per share (EPS) by fiscal year 2026.
Morgan Stanley also addressed the key topics and debates that investors are concerned with as the year draws to a close. The firm remains bullish on several fronts, including limited risk from Google (NASDAQ:GOOGL)'s traffic acquisition costs (TAC) in the near to medium term and the potential for Apple Intelligence to accelerate iPhone replacement cycles starting in fiscal year 2026.
With a strong financial health score rated as "GOOD" by InvestingPro, and current diluted EPS of $6.08, Apple continues to demonstrate solid operational execution. InvestingPro subscribers have access to over 15 additional exclusive insights about Apple's current market position and future potential.
Morgan Stanley also addressed the key topics and debates that investors are concerned with as the year draws to a close. The firm remains bullish on several fronts, including limited risk from Google's traffic acquisition costs (TAC) in the near to medium term and the potential for Apple Intelligence to accelerate iPhone replacement cycles starting in fiscal year 2026.
Moreover, the firm sees limited risk to China import tariffs and expects sustained double-digit growth in Apple's Services.
The firm also sees potential for further iPhone gross margin upside, which could contribute to Apple's financial performance. This comprehensive outlook reflects Morgan Stanley's confidence in Apple's ability to navigate the current market and emerge with strong growth in the coming years.
In other recent news, Apple Inc. has maintained its Outperform rating from Bernstein SocGen Group and Citi, despite facing challenges with the implementation of agentic AI features. The tech giant recently reported a record-breaking total revenue of $94.9 billion for the final quarter of 2024, marking a 6% growth in iPhone sales. Apple also announced plans to invest $1 billion in a new manufacturing facility in Indonesia.
In terms of analyst ratings, KeyBanc Capital Markets maintained an underweight rating on Apple, while Wedbush Securities reiterated an Outperform rating, emphasizing the upcoming release of advanced AI features. Further, MDA Space Ltd, a collaborator with Apple, is forecasted to experience over 25% growth in the coming years, according to BMO Capital Markets.
The recent appointment of Andrew Ferguson as the new Chair of the Federal Trade Commission indicates potential shifts in the approach towards big tech companies, including Apple. Lastly, Apple is set to introduce satellite connectivity to its smartwatches by 2025, following a significant investment in Globalstar (NYSE:GSAT). These are the most recent developments in Apple's ongoing pursuit of growth and innovation.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.