“The vast majority of Apple’s future revenue growth will be generated by its services, according to Morgan Stanley,” Tae Kim reports for CNBC. “The firm reiterated its overweight rating for Apple shares, saying investors are underestimating the strength of its App Store business.”

“‘We counter the [Apple] bears, arguing that App Store growth is sustainable and take rates are defensible,” Kim reports. “As a result, we believe Services margins have room to expand and the market is undervaluing the Services business,’ analyst Katy Huberty said in a note to clients.”

Kim reports, “Huberty raised her price target to $214 from $200 for Apple shares, representing 14 percent upside from Wednesday’s close.”

Read more in the full article here.

MacDailyNews Take: Last month, Huberty lowered her price target from $203 to $200, saying Apple’s share price might fall on ‘materially’ weaker iPhone sales.

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