Morgan Stanley Lowers Apple Target to $355 Over Memory Costs and AI Risks

Apple shares slipped 0.8% to trade near $330 after Morgan Stanley trimmed its price target to $355 from $360 while keeping an Overweight rating. Although the brokerage raised revenue estimates on resilient iPhone production builds and Mac strength, it cited rising memory costs and a smaller-than-expected $100 iPhone price hike as headwinds. Consequently, Morgan Stanley reduced its FY27 EPS forecast to $9.90 from $10.00 and FY28 EPS to $10.70 from $10.83. Additionally, analysts highlighted emerging long-term risks from agentic artificial intelligence, including Meta's Muse agent, potentially disintermediating the iOS ecosystem.