With this type of news, we will have to agree with those analysts who stated at the time that Apple would take longer than expected to become the 3 trillion company of dollars. The financial multinational Morgan Stanley has lowered the price that Apple shares should reach up to $ 156. The initial figure was 164.
Not all the news is bad in these forecasts made by the financial multinational, Morgan Stanley. Recapping, we have two goals that you have analyzed:
- La share value forecast from Apple
- Apple services revenue forecast for 2021 and 2022
For the former, we have to take into account that Morgan Stanley has established that the maximum limit that the value of the shares will reach is a little below the initial figures that had been considered. In this way, we have to take into account that the price will be $ 156, when it had been established that it could reach $ 164. This is mainly due to the effect called "Multiple compression".
That is, the shares of other companies in the service business have not changed despite the higher profits. Which results in reduced multiples. According to Huberty, the performance of its peers' stocks in the previous two months, primarily Apple's higher peers related to services, offsets the higher earnings and earnings estimates.
On the other hand, this same analyst has raised its estimates of income from Services already above the consensus by 3% for 2021 and by 5% for 2022. It adds that it is "increasingly convinced" that Wall Street Services' forecasts for those two years are too low. Apple Services revenue growth will accelerate by 6 points to + 22% in 2021. Compared to + 19% year-on-year and almost four points ahead of consensus estimates.
