On April 28, 2025, Morgan Stanley He raised the target price on the Apple title from 220 to 235 dollars per action. A clear and confidence signal regarding the long -term growth potential of the company, which however is part of a complex context, full of opportunities but also of risks. So is it the right time to invest in Apple?
The answer cannot be immediate or trivial in this case, because it is necessary to analyze the factors that are guiding – and that could guide – the performance of the title.
A strategic evaluation on Apple
Morgan Stanley’s optimism on Apple lies in Two elements Fundamental:
- the solidity of the company’s free cash flow;
- The growing importance of the Services segment.
The solidity of the company’s free cash flow, a key indicator of financial health, much considered by analysts and investors because it represents the concrete ability to generate excess liquidity, net of the operational expenses and investments necessary to maintain or grow the activity;
The growing importance of the segment Serviceswhich includes App Store, Apple Music, Icloud, and other digital services. This sector, according to many analysts, is still underestimated with respect to its real potential, despite now represents a stable and high marginal component of Apple’s business.
In the face of an increasingly volatile global question for the hardware – and in particular for the iPhones – the strategy to enhance the service ecosystem is revealing winning, contributing to a greater one loyalization of the users and generating recurring revenues.
The risks not to be underestimated
It is precisely the transition from a logic Dentric device to one Ecosystem-Centric of Apple who is changing the perception of investors on the title. However, there is a concrete risk of pressure on the gross marginswhich could be reduced by over 100 basis points due to the costs related to duties.
In other words, it means that Apple’s gross gains on each product sold could decrease, due to the increase in costs deriving from customs duties, that is, taxes on the import/exports imposed between countries, such as between the USA and China.
Another element of concern concerns the Chinese market: Apple continues to lose ground in China on an annual basis, accomplices both the growing internal competition, such as Huawei, and an increasingly unstable geopolitical climate.
The relationships between Apple and current political leaders – or the presidents Donald Trump and Xi Jinping – could influence crucial strategic decisions, from production to distribution.
Range-Bound in the short term
In this scenario of great uncertainty, Morgan Stanley is clear: a new surge of the title is not expected, while it is more likely that the Apple actions remain Range-Boundthat is, trapped in a price interval, with solid support at 170 dollars and an estimated resistance to New target of 235 dollars.
In practice, in the short term, it is not said that there is a real bullish race.
The Scenario at 12 months It appears much more promising. Morgan Stanley sees Margini for a re-rating of the title thanks to two main levers:
- the upward revision of profit estimates, especially if the services will continue to overperform;
- The expansion of the evaluation multiple, driven by the solidity of the Free Cash Flow and by the growing awareness that Apple is still under -representative in institutional wallets, despite being one of the most capitalized companies in the world.
In a favorable case, you could even reach the 284 dollars per action.
Should you invest in Apple now?
If it makes sense to enter the Apple title now and invest in these actions depends on the risk profile and from the time horizon. If you are looking for a quick gain, maybe it is better to wait for a possible correction. But if the goal is to build a solid position on a quality company, with excellent fundamental, generous cash flows, and a clear one long -term strategyApple remains one of the most sensible bets in the tech world.
That is, it is not a matter of “if” investing in Apple, but of “When” And “with what strategy“, Since it may not be a source of scholarship fireworks today, but it remains a firm point for those who build wallets oriented to solidity, quality and resilience.
