Q2 performance could become a catalyst for the stock price to rise! Morgan Stanley raises target price for Apple Inc. (AAPL.US) to $315.

Morgan Stanley has stated that Apple Inc. (AAPL.US) may see its second quarter performance in the 2026 fiscal year, which will be announced on April 30, as a "catalyst event" for its stock price, helping it reach towards $300. Analyst Erik Woodring wrote in a report to clients, "We expect that the upward revenue guidance for the third quarter will outweigh the impact of the decrease in gross margin, resulting in better-than-expected profits and serving as a 'catalyst event' before the June WWDC and September iPhone launches." "Although our gross margin forecast remains lower than the market's general expectation due to rising storage chip costs, the continued strength of iPhone, Mac, and service businesses should be enough to offset this pressure and make the expected earnings per share in the third quarter align closely with market expectations - which is a result better than expected under relatively lower expectations." The analyst maintained an "overweight" rating for Apple Inc. with a target price of $315. He stated that regardless of performance and guidance, this tech giant is entering a period of "seasonal strong performance." Due to gaining market share in multiple markets, Apple Inc.'s revenue growth could be "strong" (up to about 15%). Historically, this period is accompanied by multiple expansion before the release of a new iPhone model. Market expectations for the upcoming WWDC for Apple Inc. are "low." Reports about the possible launch of a foldable screen iPhone in the fall could bring a "genuine new product excitement." Additionally, the company's "robust" free cash flow sets it apart from competitors, many of whom are investing heavily in the field of artificial intelligence (AI). The analyst added, "Based on the GAAP earnings per share forecast of approximately 28 times for next year - roughly in the middle of Apple Inc.'s historical valuation range of 24 to 34 times - the current valuation is neither cheap nor heavy. However, considering our forecast of earnings per share of around $10 for the 2027 fiscal year, 5% higher than the market consensus, we believe that with moderate multiple expansion and stronger positive earnings per share revisions, Apple Inc.'s stock price is likely to reach $300 by September this year." It is worth mentioning that according to the latest news, Apple Inc. announced that current CEO Cook will officially step down from his CEO position on September 1 and transition to executive chairman, with the new CEO being the current Senior Vice President of Hardware Engineering, John Ternus. Cook will continue to fulfill his CEO duties in the summer and complete the transition handover with Ternus. After becoming executive chairman, Cook will still be involved in some company affairs, including communication with global policymakers. Cook, 65, officially took over as CEO in August 2011, succeeding Jobs. Under his leadership, Apple Inc. successfully expanded into several new product areas including Apple Watch, AirPods, and Vision Pro, significantly increased the scale of its service business, and the company's market value has grown from about $350 billion when Cook took over to about $4 trillion, achieving a several-fold increase in annual revenue. Reports of Cook stepping down as CEO have been reported by the media many times before, but this official announcement marks a new round of leadership changes at Apple Inc. Analysts believe that although Cook will continue to be involved in company affairs as executive chairman, the market will closely watch the performance of the new CEO in terms of product innovation and strategic direction. Ternus, 51, who joined Apple Inc. in 2001 and has long been responsible for hardware engineering, is one of the core members of the company's technical management team. He stated in a statement that he will continue Apple Inc.'s mission and values and is confident about its future development.