The bar is set low for Apple’s earnings next Tuesday so Morgan Stanley says it’s a good time to buy the stock.
“We believe the recent pullback is an attractive entry point given upcoming services launches and shares already pricing in extremely cautious iPhone replacement cycle and average selling price headwinds,” the bank’s analyst Katy Huberty said in a note on Friday.
Apple’s stock has plummeted more than 30 percent over the past three months. Shares of the iPhone maker took a huge hit when it slashed revenue guidance by 8 percent on Jan. 2, blaming the slowdown on weaker sales in China. The stock tanked 15 percent on that day.
Morgan Stanley said the Wall Street and buyside investors have already lowered their expectations for Apple’s December numbers following the guidance, so next week’s numbers will unlikely tank the stock further. All eyes will be on any forecast for the current quarter.
