“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.
SEE ALSO:
Why are analysts almost always wrong about Apple? – May 17, 2018
Uh, yeah, about those iPhone X ‘concerns’ from analysts: Never mind – May 1, 2018
Apple beats Street with best Q2 ever – May 1, 2018
Morgan Stanley: Apple stock may fall on ‘materially’ weaker iPhone sales – April 20, 2018
The roller coaster continues 😡
Analysts have always tried to dismiss Apple as a one trick pony. Initially it only made Macs, then iPods were the big money maker, more recently Apple’s only important product has been assumed to be iPhones. Kate Huberty now appears to be paving the way for services to be considered Apple’s sole trick for the future.
Every time that any Apple product becomes hugely successful, analysts obsess over it as though it’s the only thing that matters and every tiny scrap of information relating to it gets blown out of all proportion.