Morgan Stanley Finds Increase In Apple Institutional Ownership Still Leaves Room For Upside

On Wednesday, analysts at Morgan Stanley commented on Apple Inc. AAPL in a note titled, ‘Institutional Ownership Ticks Up;More Room for Upside.’

Morgan Stanley analyst Katy Huberty has Apple as the firm's “Best Idea” with an Overweight rating and $115 price target.

Huberty wrote, “While AAPL portfolio allocation among top shareholders increased Q/Q exiting 3Q14, it remains below S&P 500 weighting and historical peak seen in 3Q12. We view this setup as attractive as it makes recent outperformance more sustainable than two years ago.”

Moreover, Huberty finds that institutional Apple ownership has increased, but is still light compared to other large technology stocks.

”Apple and Microsoft are the only two companies with portfolio allocation among top 100 shareholders below the S&P 500 weighting, with the average allocation above the benchmark at +50bps exiting 3Q14 versus -120bps for Apple.”

Shares of Apple recently traded at $115.44, unchanged Wednesday morning.