Morgan Stanley raises Apple price target to $289

Morgan Stanley analyst Katy Huberty raised the firm’s price target on Apple to $289 from $247 while maintaining an Overweight rating.

StreetInsider:

The analyst comments “The market is skeptical that Apple TV+ will be an NPV+ [Net Present Value Plus] investment. Our in-depth analysis tells a different story with TV+ accelerating Services growth to 20% in FY20 and becoming accretive to EPS in FY21, assuming just 1 in 10 AAPL users subscribe by FY25.”

MacDailyNews Take: As we just wrote earlier this morning:

Apple TV+ will be a massive success and, at $4.99/month, if Apple just leaves the price alone for three years, the company will have 100+ million paying subscribers with 36 months from launch.

1 Comment

  1. Now they’re just being ridiculous. They’re throwing the P/E into the 22-23 range and that seems unlikely despite Apple’s business model becoming more service-oriented. These analysts are no better than those analysts who gave Apple a price target of $150 and $160. I think they’re going to extremes just to get some attention for their brokerage firms. I thought Wall Street was mostly in agreement how Apple Services won’t replace iPhone sales. One firm has certainly claimed that even higher than expected iPhone sales is already baked into the present share price, although I don’t see how an unknown sales number can be baked in.

    I feel there’s a remote possibility of Apple getting to $250 on earnings but $289 is stratospheric unless this price target is set for a year from now. It just seems like this analyst is giving shareholders false hope. There is such a huge price gap from the lowest to highest price targets for Apple. About $140. That’s just so weird considering all the analysts are basically working with what should be similar numbers.

    I’d sure like to see what some of Apple’s original content looks like before drawing any conclusions about AppleTV+. I sure hope the content turns out well because Apple critics will have a field day if it doesn’t.

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