Morgan Stanley: Buy Apple stock on the coronavirus pullback

Morgan Stanley advises investors to buy Apple stock on the recent coronavirus pullback. “We view the near-term impact as more of a timing issue rather than outright supply/demand destruction, and see strong services and wearables growth and the upcoming 5G iPhone launch as catalysts to re-rate shares toward our $368 price target,” Morgan Stanley analyst Katy Huberty writes in a note to clients.

Morgan Stanley: Buy Apple stock on the coronavirus pullback. Image: Apple logoEric J. Savitz for Barron’s:

While Apple stock has roughly doubled since the end of 2018, the rally hasn’t deterred the interest of institutional investors. Big money has piled into the stock and now has more exposure to it than at anytime since 2012, according to a new Morgan Stanley report… Apple’s average institutional ownership increased by 83 basis points—“the strongest institutional accumulation of Apple shares over a 180-day period since 2012.”

Apple’s stock has pulled back about 7% on the coronavirus outbreak, Huberty notes. She suggests buying the stock on weakness.

MacDailyNews Take: Duh. We’re having a panic-induced deep discount sale on Apple just ahead of a multi-year 5G super cycle. It makes a lot of sense to consider buying Apple stock on the coronavirus pullback

Be fearful when others are greedy. Be greedy when others are fearful. — Warren Buffett


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