If you’ve been thinking about investing in Apple stock, an analyst from Morgan Stanley says this is to time to do so. The price is already low, and not likely to go any lower.
There’s been bad news for Apple recently but that’s already priced into the stock.
Shares got as high has $232.07 back on October 3 but have dropped about 30 percent since then. Apple shares are currently going for $156.54.
“We believe the recent pullback is an attractive entry point given upcoming services launches and shares already pricing in extremely cautious iPhone replacement cycle and average selling price headwinds,” Morgan Stanley analyst Katy Huberty wrote in a note to investors on Friday.
Investors already know that Apple missed its revenue target for last quarter: CEO Tim Cook announced that early this month, and said it was almost entirely caused by problems in the Chinese economy. So the current price of the stock already reflects this shortfall.
Grey skies are going to clear up?
Apple is set to announce the full results of of the October-to-December period next week. At that same time it will make predictions about its current quarter. “Apple likely needs to deliver a better than feared revenue outlook for shares to recover further in the very near-term,” wrote Huberty.
Longer term, Morgan Stanley is optimistic about the iPhone maker. It predicts that shares will be at $211 a year from now, up significantly from today.