Morgan Stanley analyst Katy Huberty has raised her Apple price target twice in the last three weeks and, now, to $166.
…Since troughing at ~$123 in early June, Apple shares are up over 20%, outperforming the S&P 500 by 16 points. We’d attribute this to three primary factors.
First, there has been a general flight to quality big tech names in recent weeks, with AAPL, AMZN, FB, GOOGL and MSFT outperforming the S&P 500 by 8 points, on average, since early June.
Second, App Store growth accelerated in the month of June, to +17%, with most of the App Store’s largest markets showing a clear acceleration on both a Y/Y and 2-year stacked basis, supporting the view of secular services growth.
And lastly, iPhone supply chain data indicates iPhone builds are expected to grow at a mid-to-high teens percentage Y/Y in C2H21, which along with recent share gains further supports our view that iPhone revenue can grow in FY22, and refutes the concerns of iPhone s-cycle declines.
MacDailyNews Take: Read more and see the charts in the full article here.