Apple's (AAPL) App Store Sees Slower Growth Due to China - Morgan Stanley

Morgan Stanley analyst Katy Huberty noted China is a growing headwind to Apple's (NASDAQ: AAPL) App Store growth over the near term.

Huberty notes Sensor Tower data that showed Sept-quarter App Store net revenue was $3.6 billion, which fell short of the firm's $3.8 billion estimates.

"Pause in China new gaming approvals coupled with fear of economic slowdown in China present a near-term overhang..." she said.

That said, Huberty sees limited downside to near-term estimates and remain bullish on the long-term sustainability of Services growth.

The firm maintained an Overweight rating and price target of $247.00

For an analyst ratings summary and ratings history on Apple click here. For more ratings news on Apple click here.

Shares of Apple closed at $221.19 yesterday.

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