Morgan Stanley raised its price target on Apple Inc. (NASDAQ: AAPL) to $298.00 from $240.00 while maintaining an Overweight rating, citing stronger-than-expected demand for the upcoming iPhone 17 lineup.
The firm lifted its fiscal 2026 iPhone revenue estimate by 4%, including 3% higher unit sales and 1% higher average selling prices. Analysts said checks indicated a production build increase was imminent, supported by robust demand for base, Pro, and Pro Max models.
Morgan Stanley projected Apple would ship 243 million iPhones in fiscal 2026, up 3% year-on-year, noting this assumed extended replacement cycles with the iPhone 17. The firm argued its forecast was conservative compared to early demand commentary.
Looking ahead, analysts pointed to the first-ever foldable iPhone and six new models next cycle, combined with aggressive subsidies, as drivers of high-single-digit annual iPhone revenue growth into fiscal 2027, even before factoring in AI-related demand.
The firm raised fiscal 2026 and 2027 EPS estimates by 2% and 6%, respectively, and set its new target at 32x its revised 2027 EPS forecast of $9.30, about 6% above consensus. Its bull case assumed shipments of 270 million iPhones and earnings above $10 per share in fiscal 2027, driven by foldables and AI.
