Morgan Stanley urges investors to buy 'post-earnings weakness' in Apple stock

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Morgan Stanley urges investors to buy 'post-earnings weakness' in Apple stock

) is set to report its earnings for the fiscal Q2 2024 on May 2, and Morgan Stanley analysts expect the iPhone maker will slightly top the consensus estimates.

Still, they note differences from three months prior: Apple's share price has decreased by 12%, the valuation has dropped by 2.5x turns, and buy-side sentiment and positioning are more negative. “As a result, there's a chance Apple could see a relief rally/squeeze higher on a"better than feared" earnings report/guide,” analysts said in a note.

But, with a 12% downside to its bear case valuation and a 30% upside to the new price target of $210, as well as expectations of an AI-driven iPhone cycle in the fiscal year 2025, Morgan Stanley remains Overweight rating on AAPL.Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors.

 

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