On Thursday, Morgan Stanley analyst Erik Woodring increased his price target for Apple (AAPL) stock to $315 from $305 and reiterated a Buy rating, calling the iPhone maker one of the preferred IT hardware stocks for 2026. Meanwhile, Jefferies analyst Edison Lee raised his price target for AAPL stock to $283.36 from $246.99 and reaffirmed a Hold rating. Lee expects the company’s December quarter results to beat expectations, driven by strong demand for the iPhone 17 lineup.
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Morgan Stanley Analyst Is Bullish on AAPL Stock
Woodring expects the IT hardware category’s performance in 2026 to be impacted by lofty valuations, a “still-inconsistent” macro backdrop, and higher memory costs. Amid this scenario, the top-rated analyst highlighted Western Digital (WDC), Seagate Technology (STX), Apple, TD Synnex (SNX), and Teradata (TDC) as Morgan Stanley’s IT hardware stocks for 2026.
Specifically, Woodring views Apple as a key “product-cycle beneficiary.” While the analyst lowered his Fiscal 2027 product gross margin assumptions due to higher memory costs, he expects higher iPhone units and increased pricing to more than offset the memory headwinds.
Woodring stated that his new price target is based on a valuation multiple of 32x his revised Fiscal 2027 earnings per share (EPS) estimate of $9.83 (up from $9.55). He explained that the 3% rise in his Fiscal 2027 EPS estimate takes into account higher revenue to reflect price hikes amid a surge in commodity costs, 130 basis points of lower gross margin due to increased memory input costs, and a modestly higher iPhone shipment forecast “assuming 0.1-year Y/Y replacement cycle elongation.”
Jefferies Analyst Weighs in on Apple Stock
Meanwhile, Jefferies’ Lee believes Apple is “highly resilient” to the spike in memory costs, thanks to its high average selling prices (ASPs).
Based on industry checks indicating solid growth in China business, mainly driven by the iPhone 17 lineup, Lee increased his Q1 FY26 iPhone unit forecast by 7% to 86.9 million units, representing 18% year-over-year growth. He now projects Q1 FY26 EPS to grow by 15%, about 6% above the Street’s consensus.
For Fiscal 2026 and 2027, Lee expects top-line growth of 9% and 7%, respectively, with EPS growth of 12% and 10%. Despite the positives, Lee remains sidelined on Apple stock due to its valuation, which he thinks could limit the upside.
Is AAPL Stock a Buy, Sell, or Hold?
Currently, Wall Street has a Moderate Buy consensus rating on Apple stock based on 20 Buys, 10 Holds, and two Sell recommendations. The average AAPL stock price target of $299.49 indicates 10% upside potential. AAPL stock has risen 9% year-to-date.
