Apple’s 2-day slide is overdone, says Morgan Stanley

Morgan Stanley analyst Erik Woodring keeps an Overweight rating and $215 price target on Apple after the stock lost about 6% over the past two days. The market is concerned that the recent China headlines will evolve into something broader, but Morgan Stanley contends that is “unlikely”, the analyst tells investors in a research note. The real risk is that China could potentially be on the path to becoming more nationalistic, which could place over $30B of Apple’s operating profit at risk should China decide to limit Apple’s access to the Chinese market, but worries over iPhone curbs by the Chinese government aren’t necessarily new, reportedly having begun as far back as 2020, Morgan Stanley notes. The firm also adds that while China is critical to Apple’s success, Apple is also a critical contributor to the Chinese economy, with millions of jobs depending on device production and app development.