Apple received a boost from Wall Street on Wednesday after brokerages Jefferies and Morgan Stanley raised their price targets, pointing to resilient iPhone demand, pricing power and signs of accelerating growth in China.
Jefferies lifted its price target on Apple to $283.36 from $246.99, while maintaining a hold rating on the stock.
The revised target implies a 2.8% upside to Apple’s last close. Shares were trading marginally lower on the day.
Morgan Stanley also raised its target to $315, while reiterating an overweight rating, citing higher revenue expectations and greater confidence in Apple’s longer-term earnings outlook.
Apple’s share price was down by 0.59% on Wednesday.
Jefferies highlights pricing power and China’s growth
Jefferies said Apple’s high average selling prices give it a significant buffer against rising memory costs, a key concern across the consumer electronics sector.
The brokerage pointed to Apple’s robust gross margin of 46.91% over the past 12 months as evidence of that resilience.
In its modelling, Jefferies assumes a $100 increase in the average selling price of the iPhone 18, which it believes would help offset potential margin pressure.
The firm’s proprietary model forecasts a 3% decline in volume and a two percentage point margin hit in calendar year 2026, driven partly by product launch timing.
Despite that, Jefferies raised its iPhone unit estimates for the first quarter of fiscal 2026 by 7% and for the full fiscal year by 3%.
It expects an around 8% volume decline in calendar 2026 but said the impact would be manageable given Apple’s pricing strategy.
Industry checks cited by the firm indicate year-on-year iPhone sales growth of more than 40% in China in November, reinforcing confidence in near-term performance.
Jefferies said it expects Apple’s first-quarter results to beat expectations, with results in subsequent quarters likely to be in line or slightly ahead of forecasts.
Morgan Stanley sees stronger long-term earnings
Morgan Stanley raised its fiscal 2027 earnings per share estimate for Apple to $9.83, reflecting higher revenue assumptions and continued confidence in the company’s ecosystem-driven growth.
The bank’s higher price target underscores expectations that Apple can sustain earnings momentum even as the smartphone market matures, helped by services growth, premium pricing and potential new product categories.
According to data compiled by LSEG, 33 of the 50 brokerages covering Apple rate the stock a buy or higher, while 15 recommend holding it.
The median price target stands at $291.50. Apple shares were up about 9.7% year to date as of the last close.
India manufacturing talks add strategic angle
In a separate development, Apple is reported to be in early discussions with Indian chipmakers to assemble and package components for the iPhone, according to the Economic Times.
The talks, which would mark the first time Apple considers assembling and packaging some chips in India, involve Murugappa Group-owned CG Semi, which is building a semiconductor assembly and test facility in Sanand, Gujarat.
The report said the components could include display-related chips, though details remain unclear.
Apple has been accelerating plans to shift more iPhone production to India, aiming to manufacture most US-bound devices there by the end of 2026.
The move is partly driven by efforts to reduce exposure to China amid tariff risks and geopolitical tensions.
The post Why Jefferies, Morgan Stanley raised Apple stock price targets appeared first on Invezz
