Apple price target raised by $10 at Morgan Stanley, here’s why

Morgan Stanley analyst Erik Woodring raised the firm’s price target on Apple to $220 from $210 and keeps an Overweight rating on the shares. The macro backdrop remains challenging, but the firm is turning incrementally more positive on Apple as near-term risks now appear to be more limited or pushed out, and excitement around Edge AI, Services, and gross margin strength “reignites the bull case,” the analyst tells investors. Apple today sits just 3% below all-time highs, or a $3T market cap, after a 15% rally off the late-October bottom, notes the analyst, who expects a bias towards quality mega cap stocks, strength in Services and gross margins offsetting well-known near-term iPhone unit challenges in China, and growing anticipation around Apple becoming a key “Edge AI” enabler to remain tailwinds towards outperformance.