Morgan Stanley Sees iPhone Gross Margins Biased To The Upside For Apple Inc.

In a report published Tuesday, Morgan Stanley analyst Katy L. Huberty reiterated an Overweight rating and $110.00 price target on Apple Inc. AAPL. In the report, Morgan Stanley noted, “We see potential gross margin upside from higher iPhone ASPs, better NAND mix, and lower than expected bill of materials. Versus our current estimates, a 10-point mix shift toward iPhone 6 Plus or higher NAND capacities drives $2B revenue, 20bps iPhone GM, and $0.13-14 EPS upside.” Apple Inc. closed on Monday at $101.06.