Morgan Stanley Raises Apple’s Share Target to $ 200

Apple CEO Tim Cook greets customers on June 24, 2021 at Broadway’s new Apple Store in downtown Los Angeles, California.

Lucy Nicholson | Reuters

In a note to investors on Tuesday, Morgan Stanley’s Katie Huberty raised Apple’s pricing target from $ 164 to $ 200, as did Apple’s new products like augmented reality headsets and self-driving cars. It is still burned into the stock price, claiming that it is not, and maintaining the same level as the purchase valuation.

Apple’s share rose 2.3% in pre-market transactions.

Huberty also increased its December quarter iPhone shipment forecast to 83 million units, up 3 million units, up 4% year-on-year, saying Apple isn’t facing the same supply constraints it faced in the September quarter. Stated. App Store revenue is also set to exceed initial forecasts.

“Today, we know that Apple is working on products for two very large markets (AR / VR and self-driving cars). As these products become reality, ratings will be evaluated in these futures. I think we need to reflect the options of the opportunity. “

The memo claims that Apple’s stock price has risen by nearly 500% over the last five years. This is primarily due to new products and services, not iPhone revenue, which grew 40% over the same period. Meanwhile, Apple’s services business has grown to nearly $ 70 billion annually, and the wearables and accessories business contributes $ 38 billion annually, Huberty said.

According to Huberty, about 6% of Apple’s total revenue over the last five years came from new products such as AirPods, Apple Watch, and Apple’s services that didn’t exist five years ago. She said that new products like AR headsets could contribute as much revenue to the iPad as it did in the first four years of the market, showing similar growth over the next five years, with Apple’s share of one. He said it could increase by about $ 20 per share. Today’s prices in addition to Morgan Stanley’s existing growth forecasts.

Meanwhile, according to an unconfirmed report from Taiwanese trade magazine DigiTimes on Monday, Apple plans to increase iPhone production by 30% in the first half of 2022. The share of Apple suppliers such as Qualcomm and Micron also rose on Tuesday morning. This goes against a report from Bloomberg last week, and Apple warned that demand for the iPhone is waning for this holiday season.

Morgan Stanley Raises Apple’s Share Target to $ 200

Source link Morgan Stanley Raises Apple’s Share Target to $ 200

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