Morgan Stanley on Apple: "Attractive configuration in the results"

Despite an unusually negative sentiment on Wall Street, Apple is well positioned to make a profit, according to Morgan Stanley.

The company maintained its overweight position in Apple stocks and raised its price target from $ 231 to $ 247, bringing it closer to the technology giant's third quarter results on July 30.

It's an "attractive configuration in the results," Morgan Stanley badyst Morgan Katy Huberty said on Monday in a note to customers. "The combination of the negative sentiment of investors, the potential for accelerating services in June and the low bar for the September forecast keeps us in a positive earnings perspective."

The investor sentiment for the tech company Apple, which has a market value of about $ 932 billion, is generally negative, said Huberty. This is despite the fact that stocks touched about 20% of Apple's trough in May.

Apple's shares rose slightly on Monday in pre-market trading.

Huberty said it expects an acceleration in third-quarter service revenue growth since March 2018. It is "a key enabler to regain investor confidence in service narratives and their rebadessment." multiple".

Huberty also said September's Wall Street estimates "imply a low bar" for the title, which should allow Morgan Stanley to remain optimistic about Apple for the remainder of 2019.

"We see many catalysts beyond the benefits that make Apple a top choice at the end of the year," Huberty said.

Apple's shares have increased more than 5% in the last 12 months and nearly 30% since the beginning of the year.

-With reports from Michael Bloom of CNBC.