Apple Stock Summary:
- Morgan Stanley’s Analyst Katy Huberty presented a positive outlook regarding Apple stock price in an interview with CNBC
- A new job listing uploaded by Apple might suggest an expansion of the company’s services towards new platforms
- New official data shows an increase in iPhone demand in China
Morgan Stanley Gives Positive Outlook on Apple Stock to CNBC
Morgan Stanley Managing Director and Head of North American Hardware Tech Research, Katy Huberty, discussed projections for Apple stock during an interview with CNBC which took place at the Morgan Stanley APAC Summit on November 20. According to Huberty, Apple stock is currently under-owned and is expected to rise 13.8%, to the target price of 296$ set by the Investment Bank (the current stock price as of November 24 is 261.78$)
According to Huberty, Morgan Stanley’s price estimation is based on several main factors: recovering iPhone demand, expected growth in Apple’s services segment and the company’s share repurchase program. Huberty also mentioned the fact that despite the company’s exposure to the ongoing trade war between China and the US, Apple’s gross margin guidance for the upcoming December quarter were better than expected, probably due to its ability to shift production of some products out of China in case trade tensions escalate.
Huberty’s outlook on Apple stock, together with the price target of 296$ set by Morgan Stanley, is in line with I Know First’s bullish forecast as of November 21. our algorithm recommends a long position, both for the short and long term, with high signal and predictability scores for the next 12 months. I Know First’s Senior Analyst Motek Moyen recently published an analysis report regarding Apple stock, setting a target price of 290$.
Apple Might Develop Apps for Windows 10 And Xbox One
A recent job listing uploaded by Apple to LinkedIn might suggest that the company is working on new apps for windows 10. The listing, first spotted by Neowin, invites potential candidates to “join us and build the next generation of media apps for Windows”. It is reasonable to assume that Apple might build Windows apps like Apple Music and Apple TV Plus, which will be an alternative for Windows users that currently access those services using the internet browser. article published at The Verge further suggests that because one of the job requirements described in the listing is experience with UWP, it is possible that those apps could appear on Xbox One, which is especially important for Apple TV Plus. Although those reports are mainly speculative in nature, they might offer a hint for the company’s services expansion to different platforms in the future.
Recovery in Chinese Demand for iPhones According to Bloomberg
Bloomberg calculations based on official Chinese government data suggest that there’s a 6% increase in iPhone sales compared to last year. The company faced a global decline in iPhone sales over the last year, mainly due to competition with companies such as Huawei, Xiaomi and Samsung, which offer cheaper alternatives. This trend was even stronger in China, mainly due to the recent trade war that made the iPhone even more expensive for the Chinese consumer and the competition with Chinese smartphone producers. The new data published by the China Academy of Information and Communications Technology and analyzed by Bloomberg shows a trend shift in the second biggest market of Apple consumers.