Apple price target lowered to $210 from $220 at Morgan Stanley

Morgan Stanley lowered the firm’s price target on Apple to $210 from $220 and keeps an Overweight rating on the shares. The firm expects Apple to “slightly beat” March-end quarter consensus revenue and EPS estimates, driven by stable product demand and Services outperformance. However, the firm expects June-end quarter revenue guidance closer to its estimate of $80B than consensus at $83.5B. However, with the stock at $165, the firm would argue that a June quarter guide down is “well-telegraphed” and “largely priced in.” The next key catalyst following earnings will be Apple’s Worldwide Developer Conference, or WWDC, where Morgan Stanley expects new AI software features to take center stage. As a result, the firm sees a chance Apple could see “a relief rally/squeeze higher” on a “better than feared” earnings report and outlook, the analyst tells investors in a preview note.