There are mixed views on where Apple stock is headed.
It has been about two weeks since Apple (NASDAQ:AAPL) rolled out its new lineup of iPhone 17 products and so far, investor reaction is mixed.
Apple stock popped on the first couple days that the iPhone 17 was available. The stock price rose about 3.3% on September 19 and then another 4% on September 22 to $256 per share.
Since then, it has mostly flat-lined, rising about 0.7% to $258 per share as of October 3. To be fair, the markets have been pretty flat since then, muted by a government shutdown.
But many were hoping that the much-hyped iPhone 17 would provide some juice for the struggling stock, which has been a clear laggard among the Magnificent 7.
The reality is that Apple stock usually falls into the “buy the rumor, sell the news” pattern. The stock tends to rise from the hype leading up to the launch, then sink or flatline after the actual launch as investors are underwhelmed or are just taking profits. That seems to be the case with the iPhone 17 launch, although the iPhone 17 got pretty good reviews.
Apple at a Glance
| Metric | Details |
|---|---|
| Company | Apple Inc. |
| Ticker | AAPL (NASDAQ) |
| Sector | Technology (Consumer Electronics) |
| Headquarters | Cupertino, California, USA |
| Founded | 1976 |
| CEO | Tim Cook |
| Market Cap | $3.83 trillion |
| Price to Earnings Ratio (P/E) | 39 |
| Employees | 164,000 (2024) |
| Key Products | iPhone, Mac, iPad, Apple Watch, AirPods, App Store |
| Notable Recent Moves | iPhone 17 launch, Apple Intelligence Delays |
Mixed views from Wall Street
Wall Street analysts have been all over the place on Apple and its prospects following the iPhone 17 launch.
Today, researchers at Jefferies downgraded Apple stock from hold to underperform — essentially a sell rating. Jefferies analyst Edison Lee said that the solid demand for the iPhone 17 has already been baked into the price, according to the Fly. Also, he said momentum for the iPhone 17 has led to “excessive expectations” for replacements and the iPhone 18 launch next year. Overall, Lee said the current valuation, with a P/E of 39, suggests “overly bullish” outlook, per the Fly.
Jefferies lowered the price target for Apple to $205.16 per share, which would be a 21% decline from its current $258 per share price.
But earlier this week, Morgan Stanley raised Apple’s price target to $298 per share, from $240, and maintained a buy rating. Morgan Stanley analysts called the iPhone 17 launch stronger than anticipated with demand driven by upgrades of older phones, suggesting a strong upgrade cycle. They added that “early drivers of iPhone 17 strength get us more excited about the iPhone 18 cycle,” according to Investing.com.
Morgan Stanley increased Apple’s annual revenue target by 4% due to the stronger than anticipated iPhone 17 sales. Further, it boosted its earnings estimates by 2% for fiscal 2026 and 6% for fiscal 2027.
There was also a research note this week from analysts at UBS, who said the iPhone 17 has already hit peak demand. UBS has a neutral rating on Apple stock and a $220 price target.
Overall, Apple has a median price target of $250 per share among the 50 analysts that cover it. That suggests that the price will go down about 3% over the next 12 months.
It also suggests that the Apple bulls are the outliers right now, based on, perhaps, the stock’s lofty valuation and mixed growth prospects.
