Morgan Stanley Trims Apple (AAPL) PT to $156 Despite Raising Above Street Revenue Estimates

(Updated - April 6, 2021 6:58 AM EDT)

Morgan Stanley analyst Katy Huberty lowered the price target on Apple (NASDAQ: AAPL) to $156.00 (from $164.00) on peer multiple compression despite raising Services revenue to account for accelerating Google TAC-related revenue growth.

The analyst maintained an Overweight rating stating "multiple compression over the last 2 months, primarily at Apple's higher growth Services peers, more than offsets our higher revenue and earnings estimates, driving our new sum-of-the-parts based price target to $156, or 33x FY22 EPS, down from $164 previously. AAPL shares have underperformed the S&P by 20 points since reporting F1Q earnings (Apple shares are down 13%; the S&P 500 is up 7%) but we believe positive earnings revisions into what we expect to be a strong F2Q earnings report later this month will drive a return to outperformance, keeping us Overweight."

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