Morgan Stanley Drops Apple Target to $185 on Weakened Consumer Confidence

16 JUNE 2022 - News of another lowered price target for Apple shares. I told you yesterday of Deutsche Bank analyst Sidney Ho dropping his price target on Apple due to macroeconomic concerns. Now, The Fly has Morgan Stanley analyst Katy Huberty doing the same for pretty much the same reason.

With the stock market down 22% since the start of the year, Huberty says consumer spending is staring to weaken - even at the high end. According to the report:

Huberty added that the risks of a pullback at even the high-end consumer space are rising, and that a majority of survey respondents expect to reduce spending in the next six months due to inflationary pressures.

But she still likes the stock. Huberty has an “Overweight” rating on Apple shares. She also pointed out that Apple is Morgan Stanley’s only consumer stock with an “Overweight” rating. While her price target is lower, it’s still pretty high given Apple’s current standing. She’s dropped her target from $195 to $185. That’s still a pretty steep climb. Apple closed Wednesday at $135.43.