Morgan Stanley analyst Erik Woodring anticipates weak stock performance following Thursday’s earnings report, expecting investors to be underwhelmed by iPhone sales. Despite this, he remains optimistic about the stock’s future, setting a price target of $315 per share, which implies an approximate 23% upside. Woodring stated, “Looking beyond the short-term, we continue to believe Apple will outperform in 2026 as it re-launches an upgraded Siri/Apple Intelligence (February 2026 and WWDC 2026 in June), introduces its most innovative iPhone in over a decade (Foldable), and becomes the first to market with a 2nm-powered smartphone (iPhone 18 family), ” in a client note issued Monday. Analyst Michael Ng expects Apple to report earnings largely in line with consensus on Thursday but predicts the stock will rally as the market increasingly recognizes its AI strategy. Ng has set a price target of $320 per share, reflecting about 25% upside from current levels. Ng observed, “AAPL stock is down 5% year-to-date to start calendar 2026, likely due to commodity cost inflation and App Store concerns, but we view the stock weakness as a buying opportunity amid the ongoing iPhone refresh cycle.

Apple’s collaboration with Google Gemini for Siri, alongside continued iPhone demand growth amid AI-native consumer hardware launches, should convince the market that the iPhone will remain the preferred device for accessing new AI tools, alleviating competition-related concerns, ” according to his January 20 note. Tech analyst Dan Ives advises watching for updates on Apple’s AI strategy. “With the company finalizing the selection of Google Gemini to support Siri in its AI strategic initiative, it is time for Apple to outline a plan to accelerate its AI efforts throughout 2026, culminating in a much-anticipated Siri refresh this spring and at WWDC in June, ” Ives noted in a client communication Wednesday, referring to the World Wide Developers Conference. Ives further believes the stock could see a significant rally if investors begin to assign an AI premium similar to that applied to other firms involved in the rapidly growing technology. “We believe no ‘AI premium’—potentially worth $75 to $100 per share—is currently factored into Apple’s stock price, ” he wrote.