Apple Executive Shakeup! Morgan Stanley July 9th Report: $235 Target Deep Dive

Apple's second C-suite departure in 8 months as COO Jeff Williams retires, sparking succession speculation. Morgan Stanley maintains "Overweight" with $235 target based on FY26 7.9x EV/Sales multiple. Core thesis: iPhone replacement cycle at historic highs, AI features rolling out globally, targeting $8.06 EPS in 2026. Hardware Engineering SVP John Ternus (50) emerges as top CEO candidate while 30-year veteran Sabih Khan's COO promotion ensures supply chain stability. Three scenarios: bull case $284 (11.7% probability), base $235, bear $153 (12.8% probability). Key catalysts: pent-up iPhone demand, Apple Intelligence deployment, double-digit services growth.