Morgan Stanley raises Apple target share price, expects all-time record earnings

Apple Park photo of the side of the main building
Apple Park photo of the side of the main building (Image credit: Apple)

What you need to know

  • Morgan Stanley has raised its target share price for Apple.
  • Katy Huberty says that MS expects Apple to post all-time record quarterly revenue and earnings.
  • It follows reports Apple could announce its first-ever $100 billion quarter.

Morgan Stanley has raised its target share price for Apple to $152 ahead of what could be "all-time record" earnings.

In an investors note relayed by Philip Elmer-DeWitt Katy Huberty writes:

Our recent conversations suggest investors expect Apple to release solid, but not great, December quarter results. We disagree and believe that Apple is likely to report all-time record quarterly revenue and earnings.Our checks point to strength across Apple's entire Product and Services portfolio, and we model double digit Y/Y growth for all 5 revenue segments in the December quarter, with risk skewed to the upside for iPhone, Mac and Services.

Specifically, Morgan Stanley estimates Apple's December Quarter revenue earnings will be $108.2 billion, 5% ahead of consensus. That would come thanks to earnings per share estimates of $1.50, around 7% above consensus.

According to reports earlier this week, consensus earnings per share for Apple sits at $1.39 billion. From that report:

New reports indicate Apple could unveil a bumper earnings report at its call on January 27, possibly making it Apple's first-ever $100 billion quarter.First, from LLD:This three-monthly ritual might grab a few more headlines than normal because analysts expect Apple to generate sales of more than $100 billion a single quarter for the first time in its history. Russ Mould, AJ Bell Investment Director. "If the consensus forecast of $102.6 billion is attained, that would equate to year-on-year sales growth of 12%, the fastest rate of advance in ten quarters.

Apple will announce its earnings at a call on January 27 at 2 pm PT.

Stephen Warwick
News Editor

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