Apple shares close lower on Thursday, Morgan Stanley revises up price target on the stock, maintains “Overweight” rating

May 25, 2018 9:21 am

Morgan Stanley was reported to have raised its price target on Apple Inc (AAPL) to $214 from $200 previously, citing services potential. The firm also maintained an “Overweight” rating on the tech company’s stock.

Apple shares closed lower for the fourth time in the past seven trading sessions on Thursday. The stock edged down 0.11% ($0.21) to $188.15, after touching an intraday high at $188.84, or a price level not seen since May 22nd ($188.88).

In the week ended on May 20th the shares of the technological company lost 1.21% of their market value compared to a week ago, which marked the third drop out of eight weeks.

The stock has pared its advance to 13.86% so far during the current month, following a 1.50% slump in April. The latter has been a second straight month of losses.

For the entire past year, the shares of the NASDAQ-listed tech company rose 46.11%, following another 10.03% surge in 2016.

According to Morgan Stanley analyst Katy Huberty, Apple’s services business will account for 67% of sales growth during the upcoming five years, as the App Store is seen as a key driver.

“App Store growth is sustainable and take rates are defensible”, Huberty wrote in a client note. “As a result, we believe Services margins have room to expand, and the market is undervaluing the Services business.”

According to CNN Money, the 35 analysts, offering 12-month forecasts regarding Apple Inc’s stock price, have a median target of $200.00, with a high estimate of $235.00 and a low estimate of $161.00. The median estimate is a 6.30% surge compared to the closing price of $188.15 on May 24th.

The same media also reported that 23 out of 42 surveyed investment analysts had rated Apple Inc’s stock as “Buy”, while 15 – as “Hold”.

Daily and Weekly Pivot Levels

With the help of the Camarilla calculation method, today’s levels of importance for the Apple stock are presented as follows:

R1 – $188.39
R2 – $188.63
R3 (Range Resistance – Sell) – $188.87
R4 (Long Breakout) – $189.60
R5 (Breakout Target 1) – $190.44
R6 (Breakout Target 2) – $190.81

S1 – $187.91
S2 – $187.67
S3 (Range Support – Buy) – $187.43
S4 (Short Breakout) – $186.70
S5 (Breakout Target 1) – $185.86
S6 (Breakout Target 2) – $185.49

By using the traditional method of calculation, the weekly levels of importance for Apple Inc (AAPL) are presented as follows:

Central Pivot Point – $186.98
R1 – $188.86
R2 – $191.41
R3 – $193.29
R4 – $195.17

S1 – $184.43
S2 – $182.55
S3 – $180.00
S4 – $177.45

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