The outlook for Apple looks less clear in the months ahead, according to Morgan Stanley. The firm, which has an overweight rating on the megacap technology name, cut its price target to $252 from $275, implying 14.1% upside from Tuesday’s close. This comes as the stock has been struggling this year. Shares are down nearly 12% in 2025, eclipsing the S & P 500’s 5% pullback during that time. AAPL YTD mountain AAPL, year-to-date Analyst Erik Woodring trimmed his iPhone shipments outlook after the company delayed a Siri upgrade that incorporates artificial intelligence features. For 2025, he is projecting iPhone shipments to hit 230 million, which is flat compared to the prior year, and 243 million for 2026. That reflects 6% growth year over year. “With fewer ‘shots on goal’ to improve iPhone upgrade rates next cycle, we see a more gradual path to shortening of iPhone replacement cycles,” the analyst wrote in a Wednesday note to clients. Additionally, President Donald Trump imposing additional tariffs on Chinese goods last week will weigh on the company’s earnings, Woodring said. Incorporating $2 billion of higher product input costs this year, the analyst anticipates earnings and revenue for fiscal 2026 will come in 5% to 6% lower as a result. “While we believe Apple is taking actions to help mitigate tariffs, it’s unlikely that Apple can fully offset this cost without broad tariff exemptions, which have not been granted,” he also said. That said, most analysts on Wall Street covering the iPhone maker have a bullish view of the name. In fact, 31 out of 46 analysts in total covering it have a strong buy or buy rating, per LSEG. Its average target of roughly $250 also reflects a similar degree of upside ahead, implying more than 13% upside potential. Apple shares were marginally lower in the premarket on Wednesday following Woodring’s move.
