India is poised to be a major driver of Apple’s revenue and installed-based growth in the upcoming five years, highlighted Morgan Stanley’s analysts in a note. They attributed this indication to the country’s economic boom. Moreover, the tech firm’s investment in manufacturing in India.
In addition to picking Apple as their top pick amidst the developments, Morgan Stanley’s note further stressed upon an upward revision in the price target from $190 to $220. Simultaneously, the bull-case scenario is anticipated to reach $270.
As per the analysts’ forecast, India is likely to be accountable for 15% of the tech giant’s revenue growth in comparison to 2% in the last five years. Currently, this translates to $6 billion. The analysts have also predicted that India could contribute 20% of Apple’s installed base growth.
In their evaluation, the analysts cited several factors contributing to their assessment such as improved electrification in India as well as Apple’s evident efforts to develop a manufacturing and retail presence within the country. Morgan Stanley’s survey also highlighted a significant factor that is that is likely to facilitate Apple’s growth in the country, which is Indian consumers’ elevated inclination toward purchasing Apple iPhones.
However, in addition to the optimistic indications, the analysts also added a cautionary statement, stating that if India fails to meet its demographic and economic growth targets then they would not anticipate Apple to be as significant of a beneficiary to the country.
“All-in, this means that India will be just as important to Apple’s growth algorithm over the next 5+ years as China was in the last 5 years, something we believe the market underappreciates today,” CNBC reported while citing the analysts. Speaking of, Morgan Sanley’s fundamental thesis of Apple remained bullish.
