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