UPDATE: Morgan Stanley Lowers PT on Apple on Strong iPhone Pricing/Margins, Weak Mac Sales

In a report published Tuesday, Morgan Stanley analyst Katy L. Huberty reiterated an Overweight rating on

, but lowered the price target from $630.00 to $540.00. In the report, Morgan Stanley noted, “We increase FY14 EPS by $2.47 to $44 on better iPhone 5c pricing and margins offset partially by weaker Mac sales due to DRAM constraints. Our new interactive model allows investors to test the impact of iPhone user growth, upgrades, mix and margins.” Apple closed on Monday at $490.64.