Keeping an Overweight rating and a $273 price target, Morgan Stanley reiterated Apple (NASDAQ:AAPL) as its top stock pick for 2025. Citing quicker iPhone replacement cycles, consistent double-digit expansion in services, and widening gross margins, the investment firm is upbeat about Apple’s prospects.
Under the direction of analyst Erik W. Woodring, Morgan Stanley emphasized the incredible influence of Apple Intelligence that’s likely to propel a significant cycle of device upgrades beginning in fiscal 2026. The analysts think restricted backward compatibility will drive improvements and new user acquisition, therefore supporting what they project to be a record-breaking replacement cycle in fiscal 2025 and fiscal 2026.
About 4% over consensus forecasts, the research also anticipated Apple’s earnings in fiscal 2026 may reach $8.52 per share. Supported by sustained service income and superior profitability, this expansion highlights the analysts’ optimistic view. Apple stocks now trade at all-time highs after outperforming the S&P 500 by 10 percentage points over the past month. Morgan Stanley stressed that investors might be factoring in anticipation for Apple’s next iPhone cycle earlier than in past years, even though some of this surge could be linked to market dynamics and short covering.
This article first appeared on GuruFocus.
