Market Overview

Morgan Stanley Sees Apple's Mobile Payments Strategy As Big Stock Catalyst

Related AAPL
Fast Money Traders Share Their View On Apple
Markets Little Changed In Low Volume And Slow News Ahead Of Long Weekend
Tech M&A Surges in 2Q (Fox Business)

Morgan Stanley commented on the implications of Apple's (NASDAQ: AAPL) mobile payments strategy as an important stock catalyst for Apple and NXP Semiconductors NV (NASDAQ: NXPI), with Visa (NYSE: V), MasterCard (NYSE: MA), and American Express (NYSE: AXP) being beneficiaries of this plan.

Morgan Stanley sees risk for Gemalto (OTC: GTOMY).

Morgan Stanley analyst Katy Huberty sees growing evidence that Apple will adopt near field communication (NFC) as a core part of a mobile payment plan, while NXP is well-positioned to participate in Apple's mobile payment ecosystem. With the launch of the iPhone 6, Huberty sees NXP adding $250 million in sales and EPS of $0.25 in 2015.

Analyst Smittipon Srethapramote notes that Visa and MasterCard have endorsed host card emulation (HCE) which, alongside this mobile payment plan, would allow for near card-present interchange fees.

Andrew Humphrey, another analyst at Morgan Stanley, sees this move by Apple as a deflationary factor for Gemalto, and at worst could substantially reduce the addressable market for them in terms of mobile wallets. Gemalto is a firm specializing in secure OTA provisioning Secure Elements.

Apple is about even for the day at $602.88.

Posted-In: American Express Andrew Humphrey Apple Gemalto Katy HubertyAnalyst Color News Analyst Ratings

 

Related Articles (AAPL + AXP)

Around the Web, We're Loving...

Partner Network

Get Benzinga's Newsletters