Apple Stays A Top Pick With Morgan Stanley Despite Trimmed Estimates

Apple Inc. AAPL remains a top pick at Morgan Stanley despite the brokerage cutting FY 2017 iPhone estimates.

A report on Seeking Alpha said analyst Katy Huberty trimmed her FY 2017 iPhone revenue estimate by 3 percent due to “weaker demand for the back half of current cycle as purchasers anticipate new devices.”

Analyst Adjustments

The analyst also cut her shipment forecast by 7 percent, increased ASPs by 4 percent given stronger iPhone 7 Plus demand.

For December and March quarters, she anticipates 75 million (down from 79 million) and 51 million (down from 55 million) iPhones, respectively.

However, Huberty raised her FY 2018 iPhone revenue estimate by 6 percent with shipment growth now reflected at 20 percent. Huberty expects FY 2018 units at 253 million.

Huberty has an Overweight rating on Apple shares, with a price target of $148.

At last check, shares of Apple were up 0.88 percent to $120.09. The $148 target represents a potential upside of 24 percent over last close.