Morgan Stanley Trims Apple Price Target to $355 on Lower-Than-Expected iPhone Pricing

Morgan Stanley lowered its Apple (AAPL) price target to $355 from $360 on Oct. 1, 2026, maintaining an Overweight rating. The bank cited lower-than-expected pricing for the new iPhone, which weighs on average selling price and gross margin estimates. Apple shares have risen more than 30% over the past six months and trade at $333, giving the company a $4.86 trillion market cap. The stock carries a P/E of 38.5x against consensus fiscal 2026 EPS of $8.93. Morgan Stanley said its model barely changed after the iPhone launch, noting limited upside to its target after the strong run. It still projects roughly $10 EPS in fiscal 2027 and near $11 in fiscal 2028, 0% to 3% above consensus. Bernstein kept an Outperform rating, flagging rising memory costs, while UBS stayed Neutral. A UK collective action against Apple and Amazon will proceed.