Apple's (AAPL) Worldwide Developers Conference 2026 demonstrated "clearer" paths to monetizing AI sooner than expected, but also showed that Apple Intelligence improvements will be gradual, Morgan Stanley said in a note Tuesday.
The event showed a clearly upgraded and rebuilt Apple Intelligence platform and Siri functionality as well as better visibility on feature rollout timing, but also revealed shortcomings like limited third-party app integration, no availability in the European Union or China, and minimal advanced Agentic workflows, the investment firm said.
Although Apple didn't "check all the boxes," WWDC 2026 was still a clear step in the right direction, the firm said, as it raised its fiscal 2027 earnings per share estimate to $10.30 from $10.23 to reflect "slightly clearer and nearer-term" monetization opportunities, while also embedding a multiple more in-line with Apple's historical peak, according to the note.
The firm said upcoming catalysts include the company's June quarter results, September quarter guidance, the iPhone 18 and the first foldable iPhone launch in mid-September, and Apple Intelligence and Siri 2.0 relaunch in fall.
Morgan Stanley kept an overweight rating on Apple and raised the price target to $360 from $330.
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