Morgan Stanley Boosts Apple (AAPL) Target, Sees Upside From Pricing Power and AI

According to the firm, the caller $315 terms people reflects an “unchanged 32x aggregate connected our caller FY27 EPS of $9.83 (up from $9.55).” Earnings expectations for FY27 were raised connected higher gross from terms hikes, a somewhat higher iPhone shipment forecast, contempt little gross margins and an unchanged opex trajectory.

Overall, the steadfast remains assured successful Apple’s pricing powerfulness and AI concern payoff.

“3% upward revision to FY27 EPS is simply a relation of (1) 130bps little gross borderline owed to higher representation input costs, (2) 5% higher gross to bespeak terms hikes owed to commodity outgo inflation, and a somewhat higher iPhone shipment forecast assuming 0.1- twelvemonth Y/Y replacement rhythm elongation, and (3) a mostly unchanged opex trajectory that is elevated vs. humanities seasonality fixed incremental investments successful AI. As such, we stay Overweight-rated with a 14% risk-adjusted risk/reward and a 1.6 bull-to-bear skew.”

Apple is simply a exertion institution known for its user electronics, software, and services.

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