“We expect a largely in-line June Q but see 4-9% upside to Sept Q rev/EPS, driven by relative strength in iPhone, Mac, Services & Gross Margins,” the analysts tell investors in a note seen by AppleInsider. “History shows Apple outperforms by 5-10 pts after guiding the Sept Q higher, creating a positive setup into earnings next [week].”
The investment bank is maintaining its growth outlook, and says the August 3 earnings are a “positive stock catalyst that can help Apple shares re-rate towards our unchanged $220 price target.
Apple does of course launch new iPhones in September, but sales of those will mostly [a]ffect the following quarter. Nonetheless, Morgan Stanley says it remains “5-10% above Consensus in the September quarter, with upside to iPhone, Mac, Services and Gross Margins.”
The analysts say that Street estimates for the company are “conservative given secular and cyclical tailwinds.”
“Importantly, we believe this means Apple will guide to Y/Y revenue growth for the first time in 4 quarter[s],” says the report, “with the growth acceleration coming from the “right” segments — iPhone and Services.”
