2018 is shaping up to be a great year for Apple stock, Morgan Stanley analyst Katy Huberty wrote in a note distributed to clients on Monday.
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Analyst says the iPhone 8 could have the 'most meaningful feature and technology upgrades in iPhone's history' (AAPL)
2018 is shaping up to be a great year for Apple stock, Morgan Stanley forecasts.
Apple CEO Tim Cook.
According to the research, there is "increasing evidence OLED iPhone launches in October, rather than September."
If Apple launches a new iPhone with an OLED screen in October, none of the sales would be counted in its September quarter, which could be weaker than what Wall Street is expecting. But the delay would only drive sales estimates for 2018 higher, Huberty writes.
Huberty's new forecast suggests Apple could have big December and March quarters after the anticipated launch this fall of the redesigned iPhone, which is expected to come with a higher price tag.
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Some reports have suggested Apple is still working out the kinks in the device ahead of producing millions.
"In light of the most meaningful feature and technology upgrades in iPhone's history — including OLED displays, wireless charging, and 3D sensors for AR — we believe it's reasonable to assume the new, higher-priced OLED iPhone ships in October rather than September," Huberty wrote.
Depending on its desirability, a new OLED iPhone could spur a "supercycle" of sales, as there is a buildup of current iPhone users waiting for a compelling new model before they upgrade. Huberty says the iPhone supercycle hasn't been fully priced into other analysts' estimates.
Morgan Stanley rates Apple stock a "buy" and raised its price target to $182 from $177.
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