Apple Inc. (NASDAQ:AAPL) has a path to reach $300 a share by September as strong revenue growth is expected to outweigh concerns about rising memory costs, according to a Morgan Stanley analyst.
"We see a path to $300 for Apple shares by this September," Morgan Stanley analyst Erik Woodring wrote in a research note. He added that any margin pressure from memory cost inflation is "well-known, and iPhone revenue upside sets up for a better than feared June quarter guide."
Woodring maintained an Overweight rating on the stock with a $315 price target. The firm's forecast for the June quarter is 5% above consensus revenue estimates, leading to an in-line EPS forecast of $1.74 that Morgan Stanley views as better than feared. While rising memory costs are a headwind, the bank expects continued strength in iPhone, Mac, and Services revenue to more than offset the pressure.
The bullish call comes ahead of Apple's fiscal second-quarter earnings on April 30 and provides a counter-narrative to worries over hardware company margins. A price of $300 would push Apple's market capitalization to $4.4 trillion, above its previous record.
Upcoming events provide further tailwinds for the stock. Investors will be watching for any announcements on an AI-powered Siri at Apple's Worldwide Developers Conference in June and the potential launch of a foldable iPhone in the fall.
This article is for informational purposes only and does not constitute investment advice.
