Tech stocks have not been having a good run of things lately. The sheer number of layoffs out of that entire field makes that much clear. However, new reports from Morgan Stanley suggest that Apple (NASDAQ:AAPL) may have a few aces up its sleeve. Investors are happy to hear it; Apple is trading up somewhat in today’s session. Morgan Stanley analyst Erik Woodring noted that Apple has five key “underappreciated catalysts” that give it great upward potential.
Said five key catalysts are: gross margins approaching record levels, a growth boost for the iPhone and accompanying services, an iPhone subscription service, and two new product launches. That included both the iPhone 15 and the long-awaited mixed reality headset. The combined force of even just some of these would be enough for Woodring to justify a $180 price target on Apple. Adding on the iPhone subscription service, meanwhile, would be enough to bring the bull case to $230.
Woodring further noted that the time to own Apple stock is “…six to nine months ahead of key product launches.” Most of the catalysts Woodring foresees coming into play are likely to hit. The total impact of these cases, however, has yet to be seen. It’s clear, though, that Morgan Stanley is looking for a big impact from these “underappreciated catalysts.” Morgan Stanley’s previous highest valuation of Apple stock was $210. That came out back in 2021, which featured a string of record-making events for Apple.
Meanwhile, analysts are squarely in Apple’s camp. With five times as many Buy recommendations as Hold and not a single analyst calling for a Sell, Apple stock is a Strong Buy. Plus, it comes 15.22% upside potential thanks to its average price target of $172.88.