Apple Store Sign
Despite the recent reduction in the target price of Apple shares, Morgan Stanley is among the largest optimists of Apple — and it proved it by raising the company's price target to $216.
Morgan Stanley was strangely bullish on Apple, even though the company cut its price target from $220 to $210. Following Apple's Q2 2024 earnings report, the company increased its price target to $216, and it sounds like it's warranted.
“Apple had an above-average June Q, eased concerns about iPhone sales in China, achieved record service sales and a GM record, authorized the largest additional buyback in history and hinted Gen AI announcements are coming in a few weeks.” , – the company said in a message to investors, seen by AppleInsider. “After this, it is difficult not to become more optimistic.” Morgan Stanley denied the decline in iPhone sales, saying that the decline was much smaller than expected. also noted that iPhone sales in mainland China have been growing year on year
Expressing some relief that Apple's forecast for the next quarter was better than expected, Morgan Stanley also said that Apple's stock price has fallen. appears to be over. It goes on to note that Apple is typically beating market forecasts at this point in the year anyway, and believes it will see growth in the low to mid teens in 2025.
Analysts do say that they believe more will need to be done by Apple in China. But he also criticized third-party data that incorrectly claimed a catastrophic decline in iPhone sales.
At the same time, Morgan Stanley believes that the iPhone is no longer the only growth driver for Apple. Instead, analysts point to a record gross margin in the services sector of 74.6%, the highest quarterly record ever.
In this regard, Morgan Stanley raised its forecasts for the growth of Apple Services. It said there was no sign of Apple's services slowing down and the combination of that plus the devices helped improve overall profitability.
Morgan Stanley is now awaiting expected AI announcements at WWDC 2024 to boost iPhone sales.
Follow AppleInsider on Google News
