Morgan Stanley analyst Katy Huberty reiterated an Overweight rating and $247.00 price target on Apple (NASDAQ: AAPL), noting App Store growth reaccelerated in July due to a recovery in China.

Huberty notes App Store revenue reaccelerated in the month of July to +19% Y/Y on the back of growth in China meaningfully reaccelerating to 20% Y/Y in July (from 5% in June).

Further, the analyst notes growth in China gaming App Store net revenue accelerated to +21% Y/Y growth in July, from +1% Y/Y growth in June.

"Of the App Store's 5 largest markets - China, US, Japan, Great Britain and Taiwan - 3 posted a Y/Y acceleration (China, US, Taiwan) in net revenue growth in July, while the others posted a slight deceleration in growth, but still grew over 16% Y/Y," the analyst commented.

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Shares of Apple closed at $198.55 yesterday.