Apple (AAPL) is giving investors a fresh reason to revisit its growth story after the company’s Sept. 9 product event unveiled a broader lineup of new offerings, including its first foldable iPhone, the iPhone Duo, upgraded iPhone 18 Pro models, and advances in Apple Intelligence and Siri.
Morgan Stanley is becoming even more constructive on the stock, arguing that Apple’s pace of hardware and software innovation is looking more compelling than it has in recent years and that the offerings seem “more exciting.” Analyst Erik Woodring reiterated an “Overweight” rating and a $360 price target, citing Apple’s latest product event as a sign of stronger innovation and above-trend growth into fiscal year 2027.
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The firm’s enthusiasm is particularly notable because Apple’s first major product showcase under CEO John Ternus appears to have delivered more innovation than investors had anticipated, with the foldable iPhone potentially opening an entirely new product category while upgrades to Siri could strengthen the company’s artificial intelligence offering.
With Morgan Stanley now seeing a more exciting product pipeline, AAPL stock could be entering an important new phase of its investment story.
About Apple Stock
Apple, based in California, stands as a forward-looking company and a worldwide leader in hardware, software, and services. Its portfolio spans iconic devices like the iPhone, iPad, Mac, and Apple Watch, alongside widely used platforms such as the App Store, iCloud, Apple Music, and Apple TV+. The company currently boasts a market cap of $4.8 trillion and a Magnificent Seven status.
Apple has strengthened meaningfully in recent trading sessions, with the shares gaining momentum into and following the company’s Sept. 9 product event. AAPL closed at $332.27 on Sept. 11, up 1.8% for the session, after jumping 3.6% to $326.57 on Sept. 10, as investors responded positively to Apple’s unveiling of its first foldable iPhone, alongside new iPhone, Apple Watch, and AirPods offerings.
The recent rally adds to an already positive longer-term performance. Apple stock is up 22.2% year-to-date (YTD). Over the past 52 weeks, the stock has gained 44.4%, while it is also up about 9% over the past month, highlighting the acceleration in momentum heading into the product launch.
Investors appeared encouraged that Apple was delivering a more meaningful product refresh than a routine annual upgrade, while the new devices also put greater emphasis on AI and an upgraded Siri experience.
On the other hand, the price action suggests that Wall Street is increasingly willing to reward Apple for a product cycle that could be more significant than the company’s routine upgrades, with its two-day rally taking the shares to just about 3.6% below their 52-week high of $344.57.
With the stock approaching its record high, the strength of the post-event rally will put increasing attention on whether Apple can convert this renewed product optimism into another leg higher.
The stock trades at a premium at 36.06 times forward earnings, compared to the sector median and its historical average.
www.barchart.com A Deep Dive Into the Q3 Earnings Report
Apple reported fiscal third-quarter 2026 (ended June 27) results on July 30, delivering another quarter that exceeded Wall Street’s expectations. Revenue climbed 16.4% year-over-year (YoY) to $109.4 billion, while earnings per share (EPS) increased 29% to $2.02 from $1.57 a year earlier. Net income rose 27.1% to $29.8 billion, and gross margin expanded to 50.1%, benefiting partly from U.S. tariff refunds.
The iPhone remained the primary growth engine, with revenue surging 21.7% YoY to $54.3 billion, marking Apple’s strongest-ever June-quarter iPhone sales. Mac revenue jumped 28.7% to $10.4 billion, fueled by strong demand for the MacBook Neo and MacBook Pro, while iPad revenue declined 5.9% to $6.2 billion.
Apple’s Services business remained a focused spot in fiscal Q3 2026, with revenue rising 12.1% YoY to $30.7 billion, which fell short of expectations, disappointing investors. Management attributed the miss primarily to weaker mobile gaming spending, which pressured App Store revenue, as well as changes to the App Store business model in certain countries. It was also the segment’s first sequential decline since 2022.
CFO Kevan Parekh also highlighted the ongoing impact of the U.S. court ruling in the Epic Games case, which allows developers to direct users to external payment options, reducing Apple’s App Store commissions. In Europe, regulatory changes requiring Apple to support alternative app stores created additional headwinds. While the Services segment continued to grow, its slower pace raised concerns that Apple’s highest-margin business could face increasing regulatory and competitive pressure.
Additionally, revenue from Greater China rose 22.4% YoY to $18.8 billion, reflecting continued strength in the region despite narrowly missing consensus estimates.
Despite the stable quarterly performance, investors focused on management’s cautious outlook. Apple forecasted September-quarter revenue growth of 9% to 11%, below Wall Street’s expectation, while management also projected mid-teens iPhone revenue growth, compared with analysts’ 17.6% estimate.
The company attributed the softer guidance to persistent shortages of advanced chipmaking capacity and memory components rather than weakening consumer demand, emphasizing that Apple is struggling to meet demand during an unexpectedly strong product cycle.
In addition, the consensus estimate of $8.74 for fiscal 2026 indicates an increase of 17.2% YoY, before improving by around 9% annually to $9.53 in fiscal 2027.
What Do Analysts Expect for AAPL Stock?
In addition to Morgan Stanley, BofA Securities also reiterated its “Buy” rating on AAPL on Sept. 10 but lowered its price target to $370 from $380 following the company’s latest product event.
On the other hand, some analysts are taking a more cautious stance. UBS maintained its “Neutral” rating and $296 price target on Apple on Sept. 10. Analyst David Vogt remained cautious despite Apple’s unveiling of its first foldable iPhone and refreshed product lineup.
Overall, AAPL stock has a consensus “Moderate Buy” rating. Out of 41 analysts covering the tech giant, 21 recommend a “Strong Buy,” three give a “Moderate Buy,” 13 analysts stay cautious with a “Hold” rating, two offer a “Moderate Sell,” and two advise a “Strong Sell.”
While the stock is trading above the average analyst price target of $329.81, the Street-high target price of $400 suggests Apple stock can still surge by 20.4%.
www.barchart.com On the date of publication, Subhasree Kar did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
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