While most Apple investors are focused on near-term supply disruption, Morgan Stanley believe this shortsightedly overlooks the strength and health Apple’s ecosystem, hence the investment firm remains bullish on Apple.
Philip Elmer-DeWitt for Apple 3.0:
From “Addressing the Top Five Investor Questions About Apple,” a note to clients that landed on my desktop Friday:
While most investors are focused on near-term supply disruption, we believe this overlooks the strength and health Apple’s ecosystem, where we remain bullish. (emphasis his)…
While we acknowledge near-term supply disruptions remain a headwind to growth, and recently cut our Dec Q iPhone estimates (again) by 3M units (to 75.5M), we believe investors continue to under-appreciate the strength of Apple’s ecosystem.
In our view, the core drivers of Apple’s business – 1) growing Product spend per user, 2) increasing Services spend per user, and 3) installed base growth – remain intact, as Apple continues to reduce churn and improve installed base monetization.
MacDailyNews Note: Morgan Staneley analyst Eric Woodring maintains the firm’s “Overweight” rating and $177 price target on Apple shares.
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