In a note to clients on Friday morning, Morgan Stanley analysts increased the firm’s Apple target price from $296 per share to $368 per share.
Apple’s stock is up a staggering 103% over the past 12 months, and Morgan Stanley analysts projected that it will continue to outperform its hardware peers based on peaking smartphone replacement cycles combined with the upcoming 5G product cycle…
“…Longer battery life and upcoming 5G technology which will enable new functionality like Augmented Reality combined with aggressive trade-in offers that subsidize upgrades for existing iPhone owners suggest replacement cycles can’t stretch much further and may in fact begin to shrink,” the note said.
At the same time, Apple’s dependency on the iPhone for earnings has declined, with services and wearables now constituting 27% and 37% of profits, Morgan Stanley pointed out.
MacDailyNews Take: Currently, with Apple trading just below $316, Morgan Stanley currently expects $52 upside to Apple’s share price