Apple (AAPL) PT Raised to Street High $289 at Morgan Stanley

(Updated - October 23, 2019 7:13 AM EDT)

(updated to add analyst comment)

Morgan Stanley analyst Katy Huberty raised the price target on Apple (NASDAQ: AAPL) to $289.00 (from $247.00) while maintaining an Overweight rating. The price target is a new 'Street High'.

The analyst comments "The market is skeptical that Apple TV+ will be an NPV+ investment. Our in-depth analysis tells a different story with TV+ accelerating Services growth to 20% in FY20 and becoming accretive to EPS in FY21, assuming just 1 in 10 AAPL users subscribe by FY25."

Huberty sees Apple TV+ boosting Services revenue growth by 2 points in FY20, adding 1 point, on average, to Apple EPS in FY21 and beyond, and contributing an incremental $3 per share to Apple's valuation.

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