Zhi Tong Cai Jing·2025-12-18 06:43Group 1 - Morgan Stanley raised target prices for several companies, including Apple, emphasizing the outlook for the North American IT hardware industry until 2026 [1] - The hardware sector is expected to see a net profit growth of 17% over the next 12 months, with a historical high valuation rebound of nearly 6 times since April [1] - Analysts predict a 52% outperformance of the hardware sector compared to the market in 2025, although this is lower than the early cycle average of 83% [1] Group 2 - Structural opportunities remain in 2026, with Western Digital, Seagate Technology, Apple, TD Synnex, and Teradata identified as core overweight stocks [2] - Concerns are raised regarding Dell Technologies and HP due to significant exposure to memory chip risks, which may lead to increased product prices and pressure on hardware procurement budgets [2] - Target prices for several companies were adjusted, with Apple raised from $305 to $315, Seagate from $270 to $337, Western Digital from $188 to $228, and Teradata from $30 to $35 [2]