Analyst Katy Hubert of Morgan Stanley has raised her expectations for iPhone sales and revenue for Apple’s current quarter. She also predicts strong services revenue growth for the foreseeable future. Hubert has also raised AAPL’s price target as a result of her expectations.
In a new analyst note this week that was obtained by AppleInsider, Katy Huberty of Morgan Stanley estimates that Apple will announce 39.8 million iPhone units sold in its third quarter, with its services sector growing by 32 percent.
“We expect Apple to report an in-line June quarter and provide a slightly weaker than consensus September quarter outlook due to a possible October launch of the 6.1-inch LCD iPhone,” Huberty wrote in the note.
Huberty expects 90 million iPhones to be produced in the second half of calendar year 2018, even if the release of the LCD model is delayed.
Morgan Stanley has increased its price target for Apple stock to $232, from the company’s previous guidance of $214 per share. The analyst warns that any fallout from recent trade wars, or a longer roll-out of a low-end iPhone could impact Apple’s quarterly guidance and possibly the stock price as well.
Apple will announce its fiscal Q3 2018 earnings on July 31, following the close of the markets.