What you need to know
- Morgan Stanley has raised its Apple target share price.
- Katy Huberty says that strong App Store performance is the key.
- She believes high engagement spurred by the pandemic could become the "new normal".
Morgan Stanley analyst Katy Huberty has raised her target Apple share price to $340, citing strong App Store performance.
As reported by AppleInsider:
It seems that COVID-19 and lockdown orders have proven to be a "tailwind" to the app economy. Morgan Stanley previously stated April would mark the "peak" of this boom, however, it now says that the strong performance could become the "new normal." The example? China. Despite being "furthest along the recovery path", net app revenue in the country is continuing to accelerate, suggesting the growth is sustainable. Huberty expects growth in China to climb again next month barring "any unexpected changes" in consumer behavior.
On the App Store's performance alone, Morgan Stanley raised its Service Revenue forecast to $54.1 billion in 2020, and $63.7 billion the following year.
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Stephen Warwick has written about Apple for five years at iMore and previously elsewhere. He covers all of iMore's latest breaking news regarding all of Apple's products and services, both hardware and software. Stephen has interviewed industry experts in a range of fields including finance, litigation, security, and more. He also specializes in curating and reviewing audio hardware and has experience beyond journalism in sound engineering, production, and design.
Before becoming a writer Stephen studied Ancient History at University and also worked at Apple for more than two years. Stephen is also a host on the iMore show, a weekly podcast recorded live that discusses the latest in breaking Apple news, as well as featuring fun trivia about all things Apple. Follow him on Twitter @stephenwarwick9