With global tensions only increasing, a trade war with China seems unavoidable, with companies looking to navigate the move. Among them is Apple (AAPL), which is looking to reclaim a $300 stock value in a turbulent market. There were few companies that were more set to struggle amid increased tariffs on Asian countries than Apple. The iPhone developer had reportedly filled five cargo planes full of product in anticipation of the increased import duties. Yet, some experts believe it is more than capable of managing the increased tax risks and that its stock still has ATH potential this year.
Analysts at Morgan Stanley are hopeful that Apple (AAPL) stock has room to grow in 2025. The firm maintains an overweight rating on the share, suggesting it has the potential to boom from current prices. AAPL is down 20% YTD, but has closed in on the $200 mark on Tuesday. Specifically, Morgan Stanley suggests that looking beyond the current tariff uncertainties, Apple’s advancements in software and hardware are likely to hasten device replacement cycles and create new opportunities for generating service revenue. These factors contribute to the firm’s sustained positive outlook on Apple’s stock.
Morgan Stanley is projecting Apple stock to reach $200 next, a value the shares haven’t hit since the beginning of April. April showers sent the stock lower, but it appears that May flowers will sprout around AAPL soon, sending its stock back up. Several analysts also share Morgan Stanley’s optimism. According to a recent update from Evercore ISI, the stock could return to form because of its status. It remains a dominant retail tech firm, with attractive margins of 46%. Additionally, they projected that the financial impact of Chinese tariffs would persist but sit at around 20%. This would result in a cost of goods sold (COGS) inflation of as much as$8 billion for the company.
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Furthermore, Apple (AAPL) is diversifying by shifting some iPhone production to India, and Wearables and Mac production to Vietnam. Apple isn’t looking to move production to the US due to high costs, but will likely explore that as a last resort. The move would be a small step towards further protecting itself from Donald Trump’s US tariffs. However, the latter’s threats continue to grow. Thus, the company and its stock are treading a fine line between boom and bust.
Apple (AAPL) stock is trading in the middle of its 52-week range and below its 200-day simple moving average. Most analysts at CNN suggest buying/holding onto the stock, as it has the potential to reach a high of $308 in the next twelve months.