Morgan Stanley increases Apple stock target to $216 following unexpectedly positive Q2 2024 earnings report, citing strong guidance, record Services revenue, and anticipation of AI announcements at WWDC 2024.
Morgan Stanley Boosts Apple Stock Target to $216
Morgan Stanley, a notable Apple bull, has raised its price target for Apple stock to $216 after the company’s impressive Q2 2024 earnings report. Here’s why:
Positive Earnings Report
Despite previously cutting its price target to $210, Morgan Stanley responded to Apple’s Q2 earnings by increasing its target to $216. The report highlighted Apple’s strong guidance, record Services revenue, and significant buyback authorization.
Bullish Outlook
Morgan Stanley remains optimistic about Apple’s performance, citing better-than-expected iPhone sales figures and year-over-year growth in mainland China. The analysts express confidence in Apple’s ability to outperform market estimates, projecting growth in the low to mid teens for 2025.
Services Revenue Surge
With a Services gross margin of 74.6%, Apple achieved an all-time quarterly record, indicating the growing importance of Services as a revenue driver. Morgan Stanley predicts continued robust growth in Apple’s Services segment, contributing to overall margin performance.
Anticipation of AI Announcements
Looking ahead to WWDC 2024, Morgan Stanley expects Apple’s AI-related announcements to bolster iPhone sales. While acknowledging the need for further expansion in China, the firm sees promising prospects for Apple’s ecosystem and anticipates positive developments at the upcoming conference.
Conclusion
Morgan Stanley’s upward revision of Apple’s stock target reflects confidence in the company’s financial performance and strategic initiatives. With strong Services revenue and promising growth opportunities, Apple remains well-positioned for future success.
