Morgan Stanley analyst Katy Huberty has lowered her target price for AAPL. However, according to a note seen be Apple 3.0, she did forecast that Apple Services revenue growth will increase by 6 points during 2021.

From a note to Morgan Stanley’s clients that landed on my desktop Tuesday: “Services strength drives estimates higher but peer multiple compression drives PT lower to $155 (from $164). 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. We now forecast Apple Services revenue growth accelerates by 6 points to +22% Y/Y in FY21, up from +19% Y/Y previously, nearly 4 points ahead of FY21 consensus Services growth of +18% Y/Y.”

Check It Out: Morgan Stanley Lowers AAPL Target Despite Services Growth

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