Apple CEO Tim Cook greets customers at the new Apple Store on Broadway in downtown Los Angeles, California, June 24, 2021.
Lucy Nicholson | Reuters
In a note to investors on Tuesday, Morgan Stanley’s Katy Huberty raised capital Appleprice target of from $164 to $200 and maintains the equivalent of a buy rating, given that new Apple products, like augmented reality headsets or self-driving cars, have not yet been factored into the stock price.
Shares of Apple closed up 3.5% on Tuesday, hitting a new all-time high.
Huberty also increased its December iPhone shipment forecast by 3 million units to 83 million units, up 4% year-over-year, and said Apple hasn’t experienced the supply constraints it faces. in the 9th quarter. It said App Store revenue is also set to exceed initial forecasts.
“We learned today that Apple is working on products to address two significantly large markets – AR/VR and Autonomous Vehicles – and as we move closer to having these products become reality.” Indeed, we believe valuation will need to reflect the optionality of these future opportunities,” Huberty said in the note.
The note notes that Apple’s stock price has increased by nearly 500% over the past five years, largely due to new products and services, and not from iPhone revenue, which has grown 40% over the same period. Meanwhile, Apple’s services business has grown to nearly $70 billion a year, and its wearables and accessories business contributes $38 billion annually, Huberty said.
Huberty says about 6% of Apple’s total revenue over the past five years has been generated by new products like AirPods, the Apple Watch, and some Apple services, which didn’t exist five years ago. She said new products like AR headsets, which can contribute as much to sales as the iPad did in its first four years on the market, could grow at the same rate over the next five years, about the same amount as the iPad. about 20 USD/share of Apple. price today, based on existing growth projections from Morgan Stanley.
Meanwhile, a Unconfirmed report from Taiwanese trade publication DigiTimes on Monday said Apple plans to increase iPhone production by 30% in the first half of 2022. Shares of Apple suppliers such as Qualcomm and Micron also saw a boost on Tuesday morning. That reflects a report last week from Bloomberg Apple warns iPhone demand is weakening as it enters the holiday season this year.
