Morgan Stanley has raised its 2021 and 2022 Apple Services revenue forecast, but has revised its AAPL price target down to $156 to reflect warier investor outlooks surrounding the company's peers.
In a note to investors seen by
AppleInsider, lead analyst Katy Huberty has raised her already above-consensus Services revenue estimates by 3% for 2021 and by 5% for 2022. She adds that she's "increasingly convinced" that Wall Street Services forecasts for those two years are too low.
The analyst now predicts that Apple Services revenue growth will accelerate by 6 points to +22% in 2021, up from +19% year-over-year and nearly four points ahead of consensus estimates.
"Keeping the rest of our Product-related estimates unchanged, our strong Services forecast pushes our FY21 and FY22 total revenue estimates 1% higher, and our FY21 and FY22 [earnings-per-share] 1% and 3% higher, respectively," Huberty writes.