Apple Inc. (NASDAQ: AAPL) may be poised for a short-term boost as its current valuation appears attractive to investors, according to a recent analysis by Morgan Stanley.
The investment bank reiterated its “Overweight” rating on the tech giant, maintaining a price target of $235.00, which suggests a potential upside of approximately 16% from the stock’s recent trading levels around $199.19 as of June 12, 2025.
Morgan Stanley’s confidence in Apple stems from several positive indicators, including robust growth in App Store revenue, which saw a 10% year-over-year increase in May, accelerating from 8% in April. Revenue per download also rose by 5% year-over-year, surpassing the firm’s expectations by 1.5 percentage points. Analysts noted that if these trends persist, they could translate into an estimated $110 million upside in Apple’s June quarter services revenue.
Additionally, Morgan Stanley has named Apple a top pick for 2025, citing the potential for a transformative iPhone upgrade cycle driven by Apple Intelligence starting in fiscal 2026, alongside steady double-digit growth in services and expanding gross margins .
Despite this optimism, Apple’s stock has faced recent headwinds. Following the Worldwide Developers Conference (WWDC) keynote on June 9, 2025, shares slipped 1.5% to $201.42, reflecting investor disappointment over the perceived lack of groundbreaking AI advancements in announcements like the new ‘Apple Intelligence’ suite and Siri enhancements.
Earlier in the year, Morgan Stanley had cut its price target from $275 to $252 on March 12, citing weak iPhone demand due to delays in advanced Siri upgrades and potential tariff challenges on Chinese goods. However, the firm’s latest reaffirmation of a $235 target signals a renewed focus on Apple’s undervaluation relative to its long-term potential.
Current market data shows Apple trading at a forward P/E ratio that some analysts view as compelling, especially compared to historical averages. The consensus among 98 analysts points to a median price target of $237.16, with a high of $325.00 and a low of $158.00, indicating a broad range of expectations but a generally bullish outlook with an average rating of “Outperform” .
With a market capitalization of approximately $3.28 trillion and a year-to-date performance that remains resilient despite recent dips, Apple appears positioned for a potential short-term bid as investors reassess its valuation and growth prospects in AI and services. Morgan Stanley’s latest stance underscores a belief that the current price offers an entry point for those betting on Apple’s innovation pipeline and market dominance.
