The US bank raised its price target for Apple shares to US$154, up from US$150 previously as its analysts believe that investor concerns the firm has lost its edge in China, following a 24% decline in the country sales over the past year, look misguided.
The Morgan Stanley analysts expect that the firm’s new, higher-priced iPhone 8, to be introduced in September, should contain enough new features to excite Chinese consumers.
They said the new phone will have new display technologies used in smartwatches that allows for a curved form factor and longer battery life, as well as wireless charging technology, 3-D sensors and more-advanced artificial intelligence software capabilities.
In a note to clients, the analysts said: “While we see accelerated upgrades for Apple’s highest end users in all regions, our work suggests China users are especially sensitive to new technology and for factor changes.”
Apple shares closed trading at US$136.70 yesterday, just off the fresh all-time intraday high of US$136.75 hit in the afternoon, with the stock up over 42% in the past 12 months.
In pre-market trade today, the stock was around 0.3% lower at US$136.32.
Story by ProactiveInvestors