Morgan Stanley analyst Erik Woodring has reaffirmed an Overweight rating on Apple stock, setting a price target of $360. This target follows a previous adjustment from $364, prompted by rising memory costs and slower growth in the Services segment.
The bank expects a significant upgrade cycle to begin in late 2026, driven by Apple’s focus on AI monetization and the launch of its first foldable smartphone, the iPhone Duo. The device features a 7.6-inch inner display and starts at $1,999 for the 256GB model.
Pre-orders for the iPhone Duo begin on October 16, 2026, with general availability starting October 23. Morgan Stanley estimates the foldable could generate approximately $14 billion in revenue during the December 2026 quarter alone.
Apple aims to position its devices as intelligent personal hubs centered on AI capabilities. Analysts note that between 850 million and 1.3 billion existing iPhones currently lack the hardware to support full Apple Intelligence features, creating a large potential upgrade base.
Under an optimistic scenario for fiscal year 2027, the bank projects mid-teens growth for hardware and over 10% growth for Services. These figures support an estimated earnings per share of $10.30, which, at a 35x earnings multiple, aligns with the $360 price target.
