Apple Inc. (AAPL) Is On Morgan Stanley’s Best Idea List For 2013
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Apple Inc. (NASDAQ:AAPL) shares have fallen in recent weeks. A variety of reasons have been suggested. Some analysts have been so spooked that they changed their opinion less than three weeks after authoring 50 page report on why Apple Inc. (NASDAQ:AAPL) is a good buy. However, Morgan Stanley is bullish on the tech giant, and re-iterates that view in a report released today.
Despite concerns to the contrary, iPhone and iPad
demand remain strong, according to analysts at Morgan Stanley. C4Q US
iPhone purchase intentions beat their forecast. Stable 50% iPad
share also was a pleasent surprised , as Morgan Stanley expected a drop
next year. Morgan Stanley (NYSE:MS) remain overweight on Apple, and place the
stock Morgan Stanley’ Best Idea; the recommend owning into early 2013.
We highlight their reasons below:
A Morgan Stanley survey of over 1,000 US consumers indicates strong iPhone 5 demand in C4Q12
US C4Q iPhone growth of 33% matches their
above consensus global forecast of 35%, despite higher US
penetration. Importantly, a greater percentage of consumers plan
to purchase the higher priced iPhone 5 as compared to iPhone 4S mix a
year ago. As a result, they see potential upside to both their 50M unit
(+35% Y/Y) and $642 (-4%) ASP assumptions in C4Q.