Morgan Stanley sees catalysts for top pick Apple, ups price target

Morgan Stanley raised the firm’s price target on Apple to $180 from $175 and keeps an Overweight rating on the shares. The analyst says "pent up" iPhone demand, a Services re-acceleration, "underappreciated" gross margin upside, and Apple’s first new product launch in eight years are near-term catalysts for the shares. The firm believes the "upside optionality" of a "subscription shift" unlocks its $230 per share bull case for Apple. It sees a "catalyst-rich event path" over the next 12 months that is underappreciated by investors, including reaccelerating iPhone and Services growth, record gross margins, two new product launches, and the potential introduction of an iPhone subscription program. Morgan Stanley calls Apple its top pick for 2023.