Morgan Stanley raises Apple target share price, expects all-time record earnings

Morgan Stanley has raised its target share price for Apple to $152 ahead of what could be “all-time record” earnings.

In an investors note relayed by Philip Elmer-DeWitt Katy Huberty writes:

Our recent conversations suggest investors expect Apple to release solid, but not great, December quarter results. We disagree and believe that Apple is likely to report all-time record quarterly revenue and earnings.

Our checks point to strength across Apple’s entire Product and Services portfolio, and we model double digit Y/Y growth for all 5 revenue segments in the December quarter, with risk skewed to the upside for iPhone, Mac and Services.

Specifically, Morgan Stanley estimates Apple’s December Quarter revenue earnings will be $108.2 billion, 5% ahead of consensus. That would come thanks to earnings per share estimates of $1.50, around 7% above consensus.

According to reports earlier this week, consensus earnings per share for Apple sits at $1.39 billion. From that report:

New reports indicate Apple could unveil a bumper earnings report at its call on January 27, possibly making it Apple’s first-ever $100 billion quarter.

First, from LLD:

This three-monthly ritual might grab a few more headlines than normal because analysts expect Apple to generate sales of more than $100 billion a single quarter for the first time in its history. Russ Mould, AJ Bell Investment Director. “If the consensus forecast of $102.6 billion is attained, that would equate to year-on-year sales growth of 12%, the fastest rate of advance in ten quarters.

Apple will announce its earnings at a call on January 27 at 2 pm PT.

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