Apple (AAPL) stock was down 0.8% on Tuesday after KeyBanc downgraded its rating on the iPhone maker to Sell from Hold, with a price target of $250. KeyBanc cited several concerns for its bearish stance, including “slowing iPhone builds with price increases, weak U.S. upgrades, and changing device subsidy models.” However, Morgan Stanley remains bullish on Apple stock despite the recent hikes. In fact, Morgan Stanley analyst Eric Woodring, who has a price target of $360 on Apple stock, believes that “higher prices = higher earnings power.”TipRanks Welcomes a New ETF – NYSE:RANK TipRanks has entered a new arena in the investing world, powering the index of an ETF based on its unique data now trading under the ticker RANK on the NYSE. RANK tracks the performance of the TipRanks US Momentum Analysts Index, a rules-based index of 50 large U.S. companies.
Morgan Stanley Expects Apple to Gain from Price Hikes
Woodring stated that while the market is increasingly concerned about the impact of price hikes on Apple’s business, his analysis indicates that higher prices will enhance the company’s earnings power. Specifically, his analysis reveals that demand for Apple’s core products (iPhone, Mac, and iPad) remains relatively insensitive to price increases, with the iPhone being the most inelastic product, followed by Mac and iPad.
