Apple Analyst Shrugs Off Lukewarm Early iPhone 16 Demand Trends: Here's Why Soft Preorder Data Hasn't Dented Morgan Stanley's Bullish Thesis
Portfolio Pulse from Shanthi Rexaline
Morgan Stanley analyst Erik Woodring maintains a bullish outlook on Apple despite lukewarm early demand for the iPhone 16. He highlights that shorter lead times may not be indicative of weak demand, as they are influenced by supply chain adjustments and delayed feature availability. Woodring suggests that any near-term stock underperformance will be short-lived, with investors likely focusing on future cycles like the iPhone 17.
September 19, 2024 | 12:05 pm
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Morgan Stanley analyst Erik Woodring maintains an Overweight rating on Apple with a $273 price target, despite early lukewarm demand for the iPhone 16. He notes that shorter lead times are not necessarily indicative of weak demand, as they are influenced by supply chain adjustments and delayed feature availability. Woodring suggests that any near-term stock underperformance will be short-lived, with investors likely focusing on future cycles like the iPhone 17.
The analyst's commentary suggests that while there may be short-term concerns due to early iPhone 16 demand, these are mitigated by supply chain adjustments and future growth potential. The stock's current valuation and future product cycles like the iPhone 17 are expected to support the stock price, leading to a neutral short-term impact.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100