Morgan Stanley Reiterates Overweight Rating, $630 PT on Apple on Higher Cash Yield

In a report published Wednesday, Morgan Stanley reiterated its Overweight rating and $630.00 price target on Apple

. Morgan Stanley noted, “Higher cash return could be a positive catalyst. IT Hardware stocks with higher cash return historically outperformed peers. To match the average FCF payout of the S&P IT sector, Apple needs to return $28B, which implies a 6% total yield (68% of FY13 FCF) versus MSe of $15B.” Apple closed on Tuesday at $467.90.