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Investing.com - Morgan Stanley (NYSE:MS) raised its price target on Apple (NASDAQ:AAPL) to $240.00 from $235.00 while maintaining an Overweight rating on the stock. According to InvestingPro data, analyst targets for Apple range from $173 to $300, with 8 analysts recently revising their earnings estimates upward.
The firm cited Apple’s June quarter performance, which exceeded expectations across Product (5% beat), Services (150 basis points beat), and gross margins (50 basis points beat), even when accounting for one point of pull-forward. The company maintains a robust gross profit margin of 46.63% and has achieved revenue growth of 4.91% over the last twelve months.
Apple’s guidance for the September quarter revenue of $101 billion at the midpoint and gross margin of 46.5% midpoint (inclusive of tariffs) surpassed market expectations, according to Morgan Stanley.
The investment bank noted that Apple shared more detailed thoughts around AI, including ramping infrastructure spending, than in any prior earnings calls.
Morgan Stanley identified significant risk events that remain for Apple, specifically the imminent announcement of Section 232 tariffs and the upcoming US v. Google (NASDAQ:GOOGL) remedy ruling, which could impact the stock’s momentum.
In other recent news, Apple Inc. reported its fiscal third-quarter earnings for 2025, surpassing analyst expectations. The company achieved a revenue of $94 billion, exceeding forecasts by 5.66%. Additionally, Apple reported earnings per share (EPS) of $1.57, which was 10.56% higher than anticipated. Despite these strong results, the company’s shares experienced a minor decline in after-hours trading. These developments highlight Apple’s continued financial performance amidst market dynamics. The earnings report indicates robust operational achievements, aligning with analysts’ projections. Such results are crucial for investors evaluating Apple’s financial health and strategic direction.
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