Investment bank Morgan Stanley on Wednesday cut its price target on Apple (AAPL) stock, citing a lack of compelling AI features to drive iPhone sales.
Analyst Erik Woodring reiterated his overweight, or buy, rating on Apple stock but lowered his price target to 252 from 275.
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Stocks Whipsaw On Trump Tariff News; Verizon, Agnico Eagle, Tradeweb Markets In Focus
In morning trades on the stock market today, Apple stock fell more than 2% to 215.90.
“The delayed rollout of a more advanced Siri means Apple will have fewer features to accelerate iPhone upgrade rates in fiscal 2026,” Woodring said in a client note. He also factored in “a degree of tariff headwinds” in calendar year 2025.
As a result, he reduced his forecast for iPhone shipments in calendar years 2025 and 2026 by 1% to 5%, respectively. He now expects Apple to ship 230 million iPhones this year, flat vs. 2024, and 243 million units next year, up 6%.
With the lower iPhone shipments and tariff impact, Woodring also cut his fiscal 2026 revenue and earnings-per-share targets by 5% to 6%.
Last Friday, Bloomberg reported that Apple has delayed the release of an artificial-intelligence-powered upgrade to its Siri digital assistant. Apple stock has fallen for three consecutive trading sessions since the report.
An upgraded Siri personal assistant is “the No. 1 AI feature prospective iPhone upgraders are interested in,” Woodring said.
Meanwhile, Apple stock is still on the IBD Tech Leaders list.
Follow Patrick Seitz on X, formerly Twitter, at @IBD_PSeitz for more stories on consumer technology, software and semiconductor stocks.
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