Morgan Stanley Sees Beats Acquisition As Good for Apple

In a report published Thursday, Morgan Stanley analyst Katy L. Huberty reiterated an Overweight rating and $690.00 price target on

. In the report, Morgan Stanley noted, “Apple's acquisition of Beats is a low-risk, potentially high-return deal. The fast growing (30% Y/Y YTD) device business with attractive margins justifies the purchase price while the acquired talent + services opportunity present meaningful room for further monetization of Apple's 800M accounts.” Apple closed on Wednesday at $624.01.