On Monday, Morgan Stanley (NYSE:MS) raised its price target on Apple Inc (NASDAQ:AAPL) shares, citing the potential of "Apple Intelligence" to spur iPhone and iPad shipments. The new target stands at $273, a significant increase from the previous $216, while the firm maintained an Overweight rating on the tech giant's stock.
The optimism for Apple's stock comes from a comprehensive analysis of the iPhone's installed base, upgrade rates, and the shift in product mix. Morgan Stanley's research suggests a record cycle ahead for Apple, which has led to an upward revision of the forecast for the company's fiscal year 2026 earnings per share (EPS) to $8.70. This figure is 7% above the consensus estimates on Wall Street.
According to the firm, the revised price target of $273 reflects a 2:1 risk/reward skew, indicating a favorable balance between potential gains and losses. Morgan Stanley's confidence in Apple's growth prospects has also resulted in the company being named as their Top Pick in the sector.
The analyst's commentary highlights the anticipated positive impact of Apple's strategies on future product shipments. The firm's analysis points to strong performance for Apple in the coming years, supported by robust fundamentals and innovative offerings that could lead to increased consumer demand.
In parallel, Apple Inc. has agreed to open up its near-field communication (NFC) technology to competitors, a resolution to a long-standing EU antitrust investigation. This decision will allow contactless payments through its tap-and-go technology, enabling a more level playing field for mobile payment solutions within the iOS ecosystem in the European Economic Area.
In the personal computer industry, Apple Inc. has witnessed a substantial growth of 20.8% in global shipments in the second quarter, outpacing other manufacturers. This surge in demand is attributed to AI-capable devices, signaling a potential rebound for the PC market.
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