Apple stock: Morgan Stanley analysts predict iPhone maker could rally by 20%

And my pick today is Apple Morgan Stanley confirming it as a top pick, making the case that investors should look past some of those near term challenges and saying that the stock could rally another 20%. So here's why. Five underappreciated catalysts in their view that can drive a re-rating over the next year. Here are the five, re-accelerating iPhone and services growth, record gross margins, two new product launches, the potential for an iPhone subscriptions program. And now Morgan Stanley's new price target is 180 a share, about 30 bucks higher than where we are today. They're bull case though, saying that it could get to 230 bucks a share unlocked by that subscription shift that we have been talking about. We have been waiting now for quite some time when it comes to Apple.

We know Apple might have a rocky couple of months given the macroeconomic environment, which they did point to in this note, but they're bullish on the long term. Yeah. And they wrote in the note that historically you want to own Apple stock about six to nine months before they unveil a new product. They have the new ARVR headset. They have the Apple iPhone 15. Of course, I literally just bought a new iPhone. That's how it always is.

But here's the thing, Apple, they just have a way to keep you in their ecosystem. I didn't need a new phone. My phone worked fine. Yes, the battery life was not good. The picture quality, not the best, but I didn't need it, but they just have a way of making you think that you do. And there's a reason why they've been so successful. They know, you know, they've been around the block.

They've weathered a lot of storms, and I think that's important when it comes to their success. We're hooked. We're hooked. It's addiction. We talk about ecosystem, but it is addiction to all things Apple. But what is that new iPhone? It's rumored to be in September, the iPhone 15. They haven't had a big step forward in a while in terms of the phones.

I have no reason to upgrade. I don't know about yourself. But I just don't hear a lot of buzz to upgrade to new iPhones in recent years. And unless they come out with some dramatic change, which it's not entirely clear what that could be, I just might pump the brakes a little bit on bouncing back in terms of iPhone sales this year until there's a big evolution, which we haven't even heard a whisper about. Yeah, it will be interesting to see if maybe some people will be upgrading maybe more than they initially were planning to this upcoming cycle, given the supply issues that Apple did see during its very important holiday. Because they didn't get the 14. Okay.

That's a good point. So maybe that could boost sales here for the next cycle. I don't know, but that could make sense to me. I think the hardware subscription service, which we've heard buzzed about, they mentioned in the note that could be really interesting, because to Ali's point, we would all pay for it. I'm curious though, what. I have a 10. That's why I'm like, oh, I need to upgrade.

You need a new one. I don't even know. I know, but it's over a thousand bucks. You have more than one camera, so that's good. Okay, there you go. That's a good thing. I want to say you have a 12.

Oh, you only have two cameras though. I have three. Okay. I have three. I have three. I have three. I have three.

I have three.

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