Morgan Stanley has raised its price target on Apple stock from $190 to $220, citing India as a major growth driver for the company. The investment bank said that India is the world’s most populous country and has a growing middle class, which is creating new opportunities for Apple.
Patrick Seitz for Investor’s Business Daily:
“We are bullish on India as an emerging growth driver for Apple, and forecast the country accounting for 15% of Apple’s revenue growth and 20% of installed base growth over the next 5 years,” Morgan Stanley analyst Erik Woodring said in a note to clients.
India represents $6 billion in annual revenue today for Apple, but could reach $40 billion in the next decade, he said.
“Recent investments in brand awareness, local manufacturing, and affordability programs, combined with India’s economic boom and growing digitization, set the stage for India to become Apple’s next growth frontier,” Woodring said.
He estimates that India will be the source of more than 170 million new Apple product users in the next decade. In fact, India could account for about 10% of Apple users by 2032, he said.
Woodring reiterated his overweight, or buy, rating on Apple stock and raised his price target to $220 from $190. In addition, he rates Apple stock as a “top pick.”
MacDailyNews Take: Morgan Stanley’s Erik Woodring gets it.
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