Apple Retakes Key Support Level, Gets Price-Target Hike

Apple (AAPL) stock jumped on Monday after getting a bullish report from investment bank Morgan Stanley, which reiterated its overweight rating and upped its price target on the company’s shares to 182 from 177.


Apple closed up 0.35% at 149.56 on the stock market today.

Apple rose above its 50-day moving average, a key technical support level, for the first time in more than a month on Monday. The stock has been forming a flat base over the past nine weeks with a buy point of 156.75.

Morgan Stanley analyst Katy Huberty expects Apple to report an in-line June quarter and provide a weaker-than-consensus September-quarter outlook on Aug. 1.

She believes the September quarter will be impacted by “a slightly later iPhone launch than typical.” She is modeling an October shipment launch instead of September.

The delayed launch sets up better-than-normal December and March quarters as new iPhone purchases are postponed, Huberty said.

Huberty said her firm’s checks with Apple’s suppliers indicate that Apple’s OLED-screen 11th-generation smartphone, the rumored iPhone 8, will ship in October instead of the usual mid-to-late-September window.

IBD’S TAKE: Apple stock has an IBD Composite Rating of 75, out of a best-possible 99. Big winners often have a Composite Rating of 95 or higher near the start of major share-price gains. For more information on Apple stock, visit the IBD Stock Checkup.

In addition to an OLED display, the iPhone 8 is expected to feature wireless charging and 3D sensors for augmented-reality applications.

The Chinese-language Economic Daily News reported Monday that Apple’s OLED iPhone will ship in the November-December time frame, according to Taiwan-based DigiTimes. It will be available only in small volumes initially, it said.

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Two other new iPhone models with LCD screens are expected to reach full production in August, one to two months later than the normal mass-production schedules for new iPhones in previous years, DigiTimes said.


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