Apple hits another all-time high as Morgan Stanley predicts future iPhone with 'longer battery life'

Shares of Apple closed at an all-time high on Tuesday after a positive research report from Morgan Stanley’s Katy Huberty.

Apple closed at $US136.68 on Tuesday, up 0.71%. The previous closing high, $US135.72, was set last Friday. The stock also hit a record intraday high on Tuesday.

Morgan Stanley’s Katy Huberty raised her target price for Apple to $US154 from $US150 in a note distributed to clients on Tuesday.

Her main point in the research is that Apple’s struggles in China have been overblown, and she believes “Apple is positioned to take net users from local Chinese smartphone brands,” with the possibility that one in five users of Chinese-branded smartphones in China could switch to an iPhone.

Huberty also believes that a big update to the iPhone this fall could drive a big cycle of people upgrading their devices, which would translate to share gains.

She writes:

In addition to more modest updates to current iPhone SKUs, we expect Apple to launch a higher priced device with AMOLED display that allows for a curved form factor and longer battery life, wireless charging technology, 3D sensors, and more advanced AI software capabilities. While we see accelerated upgrades for Apple’s highest end users in all regions, our work suggests China users are especially sensitive to new technology and form factor changes.

Here’s today’s chart:

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