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Apple ( AAPL ) stock rose Tuesday on a report from Morgan Stanley that iPhone sales this quarter are looking better than expected. Apple was up 2%, near 105, in afternoon trading on the stock market today . Morgan Stanley ( MS ) analyst Katy Huberty reiterated her overweight rating on Apple stock with a price target of 135. March-quarter iPhone demand is “tracking ahead of expectations,” she said in a report Tuesday. Based on Morgan Stanley analysis of sell-through data, Apple likely will sell 56.5 million iPhone units in the first quarter, she said. “This is clearly ahead of expectations as investors are skeptical Apple can reach implied guidance of 52 million,” Huberty said. China is the country with the strongest iPhone sales growth, based on Morgan Stanley’s tracker, she said. Apple’s next potential catalyst is its spring product-launch event on Monday. Apple is widely expected to unveil a new 4-inch smartphone, a smaller iPad Pro and new Apple Watch bands. Investors are most likely to focus on the rumored iPhone SE on Monday, S&P Capital IQ analyst Angelo Zino said in a report Tuesday. Apple’s new 4-inch smartphone will replace the iPhone 5S, which was released in September 2013. The new model is expected to sport an A9 chip, NFC technology to enable Apple Pay and a 12-megapixel, rear-facing camera. “We believe the device will be used as an opportunity for Apple to expand into lower cost emerging regions where the company has very low market share,” Zino said. “Given the saturation and slowing growth within the smartphone space and Apple’s already dominant position in the high-end market, we believe expanding its offerings to capitalize in higher growth regions will help support iPhone unit growth over the next 12-18 months. We see the potential of at least an additional 10-15 million in iPhone shipments (around 5% of total unit volume).” Zino has a positive rating on Apple stock with a 12-month price target of 130. On Monday, UBS analyst Steven Milunovich reiterated his buy rating on Apple stock and 12-month price target of 120. Scalper1 News
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