“Apple CEO Tim Cook should put on a helmet and leather jacket because his company will be riding an iPhone ‘supercycle’ next year thanks to the highly anticipated iPhone 8 handset, says Morgan Stanley analyst Katy Huberty,” Patrick Seitz reports for Investor’s Business Daily.
“‘Our higher near-term iPhone estimates are largely priced into shares,’ Huberty said in a research report Friday. ‘”However, we’re increasingly confident in the upcoming iPhone supercycle driving meaningful estimate revisions and the stock toward our $162 bull case,'” Seitz reports. “Huberty rates Apple stock as overweight and has a base-case price target of 124, up from 123 previously.”
“Huberty raised her estimates for Apple’s calendar second-half 2016 because of ‘”better-than-expected iPhone 7 demand,'” Seitz reports. “While the iPhone 7 is doing well, the rumored iPhone 8 should do even better, she said. That 10th-anniversary handset is expected to have a glass-case design and OLED display. iPhone 7 sales should help Apple’s stock in the near term, “but the real catalyst is the fiscal 2018 supercycle” from the iPhone 8, she said.”
Read more in the full article here.