Apple Price Target Raised At Morgan Stanley On Strong iPhone 17 Demand

Group 1 - Morgan Stanley raised its price target on Apple Inc. to $298.00 from $240.00 while maintaining an Overweight rating due to stronger-than-expected demand for the upcoming iPhone 17 lineup [1] - The firm increased its fiscal 2026 iPhone revenue estimate by 4%, which includes a 3% rise in unit sales and a 1% increase in average selling prices [1] - Analysts indicated that checks suggested an imminent production build increase, supported by robust demand for base, Pro, and Pro Max models [1] Group 2 - Morgan Stanley projected Apple would ship 243 million iPhones in fiscal 2026, representing a 3% year-on-year increase, assuming extended replacement cycles with the iPhone 17 [2] - The forecast is considered conservative compared to early demand commentary, with expectations for high-single-digit annual iPhone revenue growth into fiscal 2027 driven by the first-ever foldable iPhone and six new models [2] - Aggressive subsidies are also anticipated to contribute to this growth, even before considering AI-related demand [2] Group 3 - The firm raised fiscal 2026 and 2027 EPS estimates by 2% and 6%, respectively, setting a new target at 32x its revised 2027 EPS forecast of $9.30, which is about 6% above consensus [3] - The bull case assumes shipments of 270 million iPhones and earnings exceeding $10 per share in fiscal 2027, driven by foldable models and AI [3]