In a Tuesday note to clients, Morgan Stanley analyst Katy Huberty raised her services-related revenue forecast for Apple through 2022 even as she lowered the overall price target for AAPL stock.
“Following strong March quarter App Store results and an analysis of the key drivers of Apple’s Licensing & Other segment, we raise our already above-street FY21 and FY22 Services revenue estimates by 3% and 5% respectively, and are increasingly convinced that consensus Services forecasts over the next 2+ years are too low,” Huberty wrote.