App Store growth leads to a raise in $AAPL target price

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CNBC reports that on Wednesday Morgan Stanely says that Apple could climb to $340 in the market thanks to “strong” App Store performance, per the report:

Robust App Store sales will buoy Apple’s revenues this quarter and could lead its stock higher over the next year as the company’s services segment continues to post healthier top-line growth, Morgan Stanley told clients Wednesday.

Analyst Katy Huberty wrote that preliminary data show that App Store sales grew 39% in May, representing the strongest year-over-year growth for the platform since April 2017.

Quarter to date through May, App Store net sales are up 35% year over year, far outpacing Morgan Stanley’s forecast of 18% growth for the entire June quarter.

The bank makes the prediction given App store sales have skyrocketed thanks to COVID19, Huberty says, via AppleInsider that COVID19 has “been a tailwind to the app economy, as consumers have been forced to spend more time than usual inside their home, driving an acceleration in App Store download and net revenue growth.”

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Sami started falling in love with Apple in 2010 with the iPhone 4S. As a registered developer, he deeply admires the world of Apple. Sami is an aspiring journalist, writer, and actor. He also has devoted his life to sharing his passion and knowledge with others around the world.