Recent Apple (AAPL) Data Points, Stock Sell-Off Provides 'Compelling Entry Point' Ahead of New iPhone Launch - Morgan Stanley

Morgan Stanley analyst Katy Huberty reiterated an Overweight rating and $130.00 price target on Apple (NASDAQ: AAPL) highlighting positive data points that run counter to the stock's recent weakness. She said this provides a "compelling entry point" ahead of the new iPhone launch.

Huberty said checks suggest that Apple is "taking share in Europe and China which is corroborated by strong iPhone 11 builds in the month of August."

Further, this week they picked up additional positive data points that support our bullish outlook on Apple shares.

First, the analyst highlights the pace of Apple's retail store reopenings accelerating. Apple's total open retail store count to 446 of 512 stores (87% of all stores), the highest since the end of C2Q20.

Second, Apple supplier Jabil reported a strong earnings beat yesterday. During the earnings call, Jabil's CFO Michael
Dastoor noted that mobility was one of two drivers of DMS revenue upside in the August 2020 quarter, and that "the out of season launch (read: iPhone SE) continues to perform extremely well. In tandem with this, the upcoming next-generation launch, which will begin in Q4, is going extremely well."

Lastly, they continue to see lead times extending for Apple's Mac and Macbook lineup, which they believe points to strong demand, rather than a lack of supply, for Apple's computer products.

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 $108.25 yesterday.

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