Apple price target raised to $289 from $247 at Morgan Stanley
Morgan Stanley analyst Katy Huberty disagrees with the prevailing view that Apple is entering a new, more capital intensive market with a low probability of generating a positive return via its launch of TV+. On the contrary, she sees Apple TV+ boosting Services revenue growth by 2 points in FY20 and contributing an incremental $3 per share to Apple's sum-of-the-parts valuation, Huberty tells investors. Her bear case for Apple TV+ assumes 68M paid subscriber by FY25, though her base case if for 136M subscribers by that time and in her bull case she sees Apple TV+ growing to 175M paid subscribers by FY25. Huberty, who sees accelerating Services growth and multiple expansion ahead of the 5G iPhone launch among Apple's "growing list of catalysts," keeps Apple as her top pick into 2020 and raised her price target on the stock to $289 from $247.