September 13, 2018 12:17 AM GMT
MORGAN STANLEY & CO. LLC
Apple, Inc.
Katy L. Huberty, CFA
Raising iPhone ASPs Post iPhone
Launch
Stock Rating
Industry View
Overweight
Attractive
Price Target
$247.00
EQUITY ANALYST
Kathryn.Huberty@morganstanley.com
+1 212 761-6249
Erik W Woodring
RESEARCH ASSOCIATE
Erik.Woodring@morganstanley.com
+1 212 296-8083
Elizabeth Elliott, CFA
RESEARCH ASSOCIATE
Elizabeth.Elliott@morganstanley.com
+1 212 761-3632
Kieran Kenny
RESEARCH ASSOCIATE
Kieran.Kenny@morganstanley.com
+1 212 296-5137
Apple, Inc. ( AAPL.O, AAPL US )
Higher iPhone ASPs and dual-SIM are the pos. surprises out of
yesterday's product launch. We raise FY19e ASPs to +6% Y/Y
growth (from -2%) lifting our FY19 Revenue and EPS by 4.3%
and 4.0%. Our SOTP-based $247 PT increases $2. We're
buyers post the event.
WHAT'S
CHANGED
Apple, Inc. (AAPL.O)
From
Price Target
$245.00
To
$247.00
Estimates move higher on iPhone ASP uplift. Today's product event largely met
our expectations heading into the event. While this iPhone launch was marketed
as an "S" cycle, iPhone ASPs and larger storage SKUs across the portfolio
surprised to the upside, as did the inclusion of dual-SIM capabilities. On the
negative side, the availability date for the iPhone XR (October 26th) was a bit
later than we expected but still in-line with last year's iPhone X availability date.
We don't see the later ship date materially impacting unit demand in C2H18,
particularly given most early adopters will skew to the XS Max, in our view.
While we keep our FY19 unit expectations unchanged, we raise our FY19 iPhone
ASP estimate to $793, up 6% Y/Y vs. our prior estimate of $739 (-2% Y/Y).
Furthermore, with higher pricing we'd expect a stronger gross margin profile for
the new iPhone SKUs, especially considering the falling price of both DRAM and
NAND. Net, our FY19e EPS increases to $14.69 (from $14.12) and our CY19e EPS
increases to $15.35 (from $14.76). Our $247 price target is up from $245
previously, with higher revenue partially offset by recent multiple compression
at internet/platform comps, most notably SNAP, TWTR, Tencent and Alibaba. We
reiterate our Overweight rating and recommend buying shares on any post-event
weakness due to de-risked FY19 iPhone expectations, a Services business that
continues to outpace consensus expectations, and underweight allocations with
large institutional investors.
What we learned from Apple's 'Gather round' product event:
(+) iPhone pricing and larger storage SKUs surprise to the upside. The most
significant investor concern entering FY19 has been that without strong ASP
growth, FY19 iPhone revenue growth is likely to flatline. Today's iPhone
announcement is likely to dispel that fear. Apple's new highest end iPhone, the
iPhone XS Max, is $100 more expensive than last year's iPhone X, while the
iPhone XS is in line with last year's iPhone X pricing (Exhibit 1). Additionally, each
IT Hardware / United States of America
Stock Rating
Industry View
Price target
Shr price, close (Sep 12, 2018)
Mkt cap, curr (mm)
52-Week Range
Fiscal Year Ending
ModelWare EPS ($)
Prior ModelWare EPS
($)
P/E
Consensus EPS ($)§
Div yld (%)
Overweight
Attractive
$247.00
$221.07
$1,080,369
$229.67-149.16
09/17 09/18e 09/19e 09/20e
9.21
-
11.75
-
14.69
14.12
17.11
16.49
16.7
9.00
1.6
18.8
11.77
1.3
15.1
13.58
1.4
12.9
15.02
1.6
Unless otherwise noted, all metrics are based on Morgan Stanley ModelWare
framework
§ = Consensus data is provided by Thomson Reuters Estimates
e = Morgan Stanley Research estimates
QUARTERLY MODELWARE EPS ($)
Quarter
Q1
Q2
Q3
Q4
2017
3.36
2.10
1.67
2.07
2018e
Prior
2.75
2018e
Current
3.89a
2.73a
2.34a
2.75
2019e
Prior
4.56
3.37
2.80
3.34
2019e
Current
4.86
3.47
2.87
3.44
e = Morgan Stanley Research estimates, a = Actual Company reported data
Morgan Stanley does and seeks to do business with
companies covered in Morgan Stanley Research. As a
result, investors should be aware that the firm may have a
conflict of interest that could affect the objectivity of
Morgan Stanley Research. Investors should consider
Morgan Stanley Research as only a single factor in making
their investment decision.
For analyst certification and other important disclosures,
refer to the Disclosure Section, located at the end of this
report.
1
iPhone XS model is available in 64GB, 256GB and now, a 512GB SKU, meaning
there is even greater uplift to average pricing on a Y/Y basis than we expected. As
it relates to the iPhone XR, a starting price of $749 is $80 above our prior
expectations, and while it's $50 cheaper than the iPhone 8 Plus starting price last
year at launch, the general migration of higher pricing across the portfolio means
that iPhone ASPs should grow Y/Y vs. our prior estimate for 2% ASP declines and
street expectations for 1% ASP growth in FY19. Our new $793 iPhone ASP
estimate for FY19 (+6% Y/Y) implies 65% shipment mix of the lowest storage
capacity SKU, on par with mix over the last year. We then assume 25% of
shipments are of the mid-level SKU and only 10% are the highest storage SKU
(Exhibit 2). Expanding from two to three storage capacity options is more likely to
reduce the mix of the lowest capacity, in our view, with our bull case reflecting
this dynamic, implying FY19 ASPs could be up nearly 8% (Exhibit 4).
(+) Integration of dual SIM a potential new demand driver, especially in China.
In our view, the biggest technological upgrade in the new iPhone models that
could influence unit growth is the integration of dual SIM capabilities, which will
enable users to have two mobile numbers on one device. This potential catalyst
is especially important in China, as it puts Apple on par with local brands in a
market where the typical wireless subscriber owns more than one SIM card
because many users have 1) separate WeChat accounts for personal and
professional purposes, 2) separate data plans to maximize pricing and
consumption levels or 3) separate phones for domestic and international travel.
With 55% of the iPhone base in China owning an iPhone 6s or older (Exhibit 5),
China has a more aged installed base than other regions, which combined with
more users planning to upgrade their smartphone (Exhibit 6) and choose Apple
relative to our past surveys (Exhibit 7), suggests dual-SIM could become a real
demand driver.
(=/+) iPhone technology upgrades in-line with "S" cycle expectations; Apple
Watch moves further into Health. Most of the technological enhancements to
the iPhone XS, XS Max, and XR were in-line with expectations heading into the
event, and the integration of iPhone X technology into a greater portion of the
iPhone portfolio is a positive, in our view. Nevertheless, based on past survey
work we have done, camera functionality and battery life are the most important
factors to smartphone purchasers and therefore the smart HDR and improved
depth control features of the new camera module (enabled by the upgraded A12
Bionic chip), plus the improved battery life vs. last years models are the most
compelling upgrades, in our view (Exhibit 8). On the Apple Watch front, new
technology features such as a 30% larger screen face, the S4 chip that delivers
2x the performance of the previous AW processor, and a new accelerometer are
clear upgrades. However, the inclusion of advanced heart monitoring capabilities,
such as rhythm detection and electrocardiogram (ECG) support, which has been
cleared by the FDA, was the biggest incremental in our mind and shows that
Apple continues to expand their TAM by further disrupting the healthcare
market.
(-) What we didn't hear that we wish we did. The iPhone and Apple Watch
updates were largely in line with our expectations, however we also were hoping
to hear about new iPad and/or Mac portfolio launches, especially an upgrade to
the iPad Pro (including the integration of front facing 3D sensor and FaceID).
Additionally, Apple made no mention of the AirPower wireless charging pad,
2
which they introduced at last year's iPhone launch event but has been effectively
unspoken of since. And while the October 26 ship date for XR is a bit later than
expected, the faster geographic roll out - 59 initial countries for XS and XS Max
versus 28 countries for 8 and 8 Plus a year ago - likely neutralizes any near-term
unit impact.
3
Exhibits
Exhibit 1: The average price of new iPhone models is higher this cycle than last, while legacy
iPhones received their normal $100 price cut.
Old Pricing
New Pricing
iPhone XS Max
iPhone XS Max
iPhone XS Max
64
256
512
Retail
Price
$ 1,099
$ 1,249
$ 1,449
iPhone XS
iPhone XS
iPhone XS
64
256
512
$ 999 iPhone X
$ 1,149 iPhone X
$ 1,349
iPhone XR
iPhone XR
iPhone XR
64
128
256
$ 749
$ 799
$ 899
iPhone 8 Plus
iPhone 8 Plus
64
256
iPhone 8
iPhone 8
Model
Storage (GB)
Model
Storage (GB)
Retail
Price
Diff.
64
256
$ 999 $
$ 1,149 $
-
$ 699 iPhone 8 Plus
$ 849 iPhone 8 Plus
64
256
$ 799 $
$ 949 $
(100)
(100)
64
256
$ 599 iPhone 8
$ 749 iPhone 8
64
256
$ 699 $
$ 849 $
(100)
(100)
iPhone 7 Plus
iPhone 7 Plus
32
128
$ 569 iPhone 7 Plus
$ 669 iPhone 7 Plus
32
128
$ 669 $
$ 769 $
(100)
(100)
iPhone 7
iPhone 7
32
128
$ 449 iPhone 7
$ 549 iPhone 7
32
128
$ 549 $
$ 649 $
(100)
(100)
$ 329
$ 399
$ 329
$ 1,149
(50)
(20)
70
100
Apple Watch Series 4
Apple Watch Series 4 + Cellular
Apple Watch Series 3
Apple Watch Series 3 + Cellular
Apple Watch Nike+
Apple Watch Hermes
$ 399
$ 499
$ 279
$ 379
$ 399
$ 1,249
Apple Watch Series 3
Apple Watch Series 3 + Cellular
Apple Watch Nike+
Apple Watch Hermes
$
$
$
$
Source: Company Data, Morgan Stanley Research
4
Exhibit 2: Our new FY19 iPhone ASP estimate of $793 assumes that ~2/3 of new iPhone model
shipments are from the lowest storage SKU, in line with FY18 mix.
Storage
Model
(GB)
6.5" OLED (iPhone XS Max)
64
256
512
5.8" OLED (iPhone XS)
List Price
$1,172
$1,099
$1,249
$1,449
FY19 Sales
Mix Est
SKU Mix Est
26%
17%
65%
6%
25%
3%
10%
64
256
512
$1,072
$999
$1,149
$1,349
9%
6%
2%
1%
65%
25%
10%
64
128
256
$777
$749
$799
$899
35%
23%
9%
3%
65%
25%
10%
64
256
$762
$699
$849
6%
3%
2%
58%
42%
64
256
$655
$599
$749
8%
5%
3%
62%
38%
32
128
$598
$569
$669
3%
2%
1%
71%
29%
32
128
$478
$449
$549
4%
3%
1%
71%
29%
32
128
$474
$449
$549
0%
0%
0%
75%
25%
32
128
$367
$349
$449
4%
3%
1%
82%
18%
$334
$299
$399
$793
5%
3%
2%
100.0%
6.1" LCD (iPhone XR)
iPhone 8 Plus
iPhone 8
iPhone 7 Plus
iPhone 7
iPhone 6/6s Plus
iPhone 6/6s
iPhone SE
32
128
Total
65%
35%
Source: Company Data, Morgan Stanley Research
5
Exhibit 3: Our new FY19 iPhone mix estimate implies that FY19 iPhone ASPs grow 6% Y/Y, to
$793.
FY19 iPhone Blended ASP
Model
iPhone XS Max
iPhone XS
iPhone XR
iPhone 8 Plus
iPhone 8
iPhone 7 Plus
iPhone 7
iPhone 6/6s Plus
iPhone 6/6s
iPhone SE
Blended Average
Y/Y Growth
Shipments
Mix
(000s)
List Price
26%
56,815
$1,172
9%
19,962
$1,072
35%
76,777
$777
6%
12,817
$762
8%
18,290
$655
3%
5,753
$598
4%
8,012
$478
0%
971
$474
4%
8,822
$367
5%
11,781
$334
100.00%
220,000
% of Units
Retail Sale
Through
Retail
ASP to
Retail
Discount
Apple
87%
6%
$1,101
87%
6%
$1,005
87%
6%
$728
83%
6%
$715
83%
6%
$613
82%
6%
$560
82%
7%
$446
100%
7%
$443
100%
6%
$343
83%
6%
$313
Total ASP
$ 1,110
$ 1,013
$
735
$
723
$
620
$
567
$
452
$
443
$
343
$
317
$
793
5.6%
Source: Company Data, Morgan Stanley Research
Exhibit 4: Our current FY19 ASP assumption of $793 implies 6% Y/Y ASP growth. If we assume the
larger storage SKU of new models comprise closer to 50% of shipments, then FY19 ASPs could
increase 8% Y/Y.
FY19 iPhone ASP Expectations
$850
$808
$793
$781
$800
$750
$750
$739
$700
Bull Case
Estimate
Current
Estimate
Bear Case
Estimate
Prior FY19
Estimate
$675
$651
$650
$641
$600
FY15
FY16
FY17
FY18E
FY19E
Source: Company Data Morgan Stanley Research
6
Exhibit 5: The base of aged iPhones is higher entering this cycle than last cycle, a potential sign of
more iPhone upgrades in FY19 or FY20.
% of iPhone Installed Base Considered "Aged"
Entering iPhone X Cycle
Size of Currrent Installed Base (M; RHS)
Entering iPhone Xs Cycle
70%
700
60%
60%
55%
46%
50%
40%
49%
43%
39%
500
45%
44%
38%
600
55%
35%
32%
400
30%
300
20%
200
10%
100
0%
0
Global
North
America
EMEA
China
Asia Pac
Latam
Source: IDC, Morgan Stanley Research; "Aged" iPhones are considered those that were launched 3 years ago. Entering the iPhone X cycle, this would
include all models from iPhone 6 and older. For the iPhone Xs cycle, this would include all iPhone 6s models and older.
Exhibit 6: 86% of our August 2018 survey respondents in China
indicated they are likely to buy a new smartphone in the next 12
months vs. 73% in the spring of 2016...
Exhibit 7: ...and for those respondents that indicated a likelihood to
upgrade, 34% said they would likely buy an iPhone, up from 27% of
total respondents that currently own an iPhone.
China: Intentions to Buy a Smartphone in the Next 12
Months
Apr '16
Aug '18
China: Current Smartphone Brand vs. Purchase Intentions
50%
40%
35%
30%
25%
20%
15%
10%
5%
0%
8%
4%
1%
2%
0%
Extremely
Likely
Somewhat
Likely
Source: AlphaWise, Morgan Stanley Research
Neutral
Somewhat
Unlikely
Extremely
Unlikely
10%
9% 7%
8% 7%
5% 7%
6%
Other
8%
10%
14%
10%
Samsung
18%
20%
26%28%
VIVO
30%
34%
27%
OPPO
33%
Brand Most Likely to Buy Next
Xiaomi
40% 41%
Huawei/
Honor
40%
Current Brand
Apple
45%
Source: AlphaWise, Morgan Stanley Research
7
Exhibit 8: Longer battery life, camera upgrades and faster performance are the most notable spec improvements.
Source: Company Data, Morgan Stanley Research
8
AAPL Risk Reward
Growth Contribution from Services Underappreciated by Investors
Investment Thesis
$ 400
$363.00 (+64%)
350
300
250
$247.00 (+12%)
$221.07
200
$151.00 (-32%)
150
100
Apple has the world's most valuable
technology platform with 1.3Bn active devices,
and is well positioned to capture more of its
users' time in areas such as video, augmented
reality, health, autos and home. Accelerated
Services growth, margin expansion, and tax
reform / cash repatriation are catalysts that
can help sustainably re-rate shares.
50
0
Sep-16
Key Debates
Mar-17
Sep-17
Price Target (Sep-19)
Mar-18
Historical Stock Performance
Sep-18
Mar-19
Current Stock Price
Sep-19
WARNINGDONOTEDIT_RRS4RL~AAPL.O~
Source: Thomson Reuters, Morgan Stanley Research
Price Target $247
Derived from base-case scenario.
Bull
$363
20.3x Bull Case CY19e EPS of $17.85
Services revenue per device accelerates to 10%+ growth annually as Apple
converts more users to services customers and launches new AR and original
video content. The majority of growth comes from services but hardware grows
slightly as replacement cycles level off earlier than in the base case and Apple
continues to gain new users in markets like China and India. Gross margins move
above 40% due to higher Services revenue mix. Investors focus on monetization
of Apple's 1.3B and growing device base and value Apple closer to that of a
platform company given the more stable growth trajectory. We assume a 20-21x
P/E multiple on CY19 EPS of $17.85. Our bull case valuation is supported by
SOTP analysis assuming Apple Services garners an EV/Sales multiple in-line with
high growth platforms like FB, SNAP, TWTR, and NFLX.
Base
$247
16.1x Base Case CY19e EPS of $15.35
Continued 25%+ services growth with the mix shift to higher margin services,
slightly growing iPhone ASPs and more share repurchases translating to faster,
and more sustainable, EPS growth. With longer replacement cycles in the
broader device market translating to flat device units in FY17-20, we see
accelerating Services growth combined with increased share buybacks and a
lower tax rate driving multiple years of double digit EPS growth. With Services
becoming the primary driver of our forward estimates we fully shift to our sumof-the-parts analysis, which credits Apple's hardware business with a multiple
that blends HPQ and MSFT and Apple's services business with the average of 10
consumer platform peers and drives our $247 PT, translating to a 16.1x P/E,
slightly higher than Apple's 10-year CY+1 P/E trading range.
Bear
$151
12.1x Bear Case CY19e EPS of $12.51
Weakening global smartphone market overshadows Services growth, resulting
in total company revenue declines and margin pressure. Apple continues to
invest in future products and services, driving negative operating leverage, offset
by continued share repurchases. Our sum of the parts analysis assumes lowerend of platform multiples, in-line with Google, for Apple Services and a more
Can Apple sustainably grow revenue and
EPS? Yes, the combination of increased
services mix, strong wearables growth, higher
share repurchases, potential M&A, and
investments in new categories like video,
augmented/virtual reality, artificial
intelligence, health, and autos are drivers of
sustainable growth longer-term.
Can Services growth help re-rate shares?
Yes, we believe so. Apple is a structurally
different company today than it was just 5
years ago, with a larger cash balance and a
Services business that accounts for ~15% of
revenue and 22% of gross profit dollars,
growing to 27% of revenue and 40% of gross
profit dollars by FY22. And we see
accelerating Services data points as evidence
of this transformation that can act as
catalysts to re-rate shares higher.
Can Apple accelerate innovation? Yes, FY17
was the fifth year in a row that R&D growth
outpaced revenue growth, translating to new
products and services over time. Over the
past three years, Apple spent an incremental
$11.6B on R&D compared to less than $1B
ahead of iPhone and iPad. This compares to
minimal incremental spend at top auto
makers (ex-Tesla) and $10.2B of incremental
spend at Alphabet on far more projects.
Potential Catalysts
Increasing services mix, driven by increased
penetration of the user base and new
services.
Rising iPhone ASPs, strong wearables
growth speak to increasing customer
engagement and spend and help shift
9
hardware skewed multiple on Apple's device revenue, implying a roughly 12x
P/E, the lower end of where large cap hardware stocks have traded over the
last year and significantly below Apple's 10-year average historical P/E.
narrative from product cycles to a platform
story
Expanding the platform to new industries,
for example healthcare, autos or homes,
drives “halo effect” across Apple's businesses
Expanding points-of-sale, especially in
emerging markets like India
Risks to Achieving Price Target
Weak global consumer spending or
increased price elasticity on the back of higher
priced iPhones
Maturing markets, and Android competition
in smartphones and tablets
Lack of traction with new product
categories and/or services limits multiple
expansion
Carriers lengthening replacement cycles
and/or lower subsidies or users replace
batteries instead of upgrade
Political, regulatory and legal risk as Apple
gains profit share in mobile devices and
remains dependent on Asian suppliers (i.e.
Tariff risk) and consumers to deliver results
10
Model
Exhibit 9: Apple Income Statement
Dec-16
78,351
2017A
Mar-17
Jun-17
52,896
45,408
Sep-17
52,579
Dec-17
88,293
2018E
Mar-18
Jun-18
61,137
53,265
Sep-18
61,026
Dec-18
93,922
2019E
Mar-19
Jun-19
69,117
59,374
Sep-19
66,981
Fiscal Year
2016A
2017A
2018E
2019E
2020E
215,639 229,234 263,721 289,394 301,753
54,378
5,533
7,244
7,172
4,024
33,249
3,889
5,844
7,041
2,873
24,846
4,969
5,592
7,266
2,735
28,846
4,831
7,170
8,501
3,231
61,576
5,862
6,895
8,471
5,489
38,032
4,113
5,848
9,190
3,954
29,906
4,741
5,330
9,548
3,740
34,851
5,023
6,729
10,031
4,391
63,369
5,815
7,086
10,875
6,777
42,101
4,084
6,006
11,773
5,153
32,098
4,540
5,468
12,126
5,143
36,756
4,928
6,580
12,900
5,817
136,700
20,628
22,831
24,348
11,132
141,319
19,222
25,850
29,980
12,863
164,365
19,739
24,802
37,240
17,574
174,324
19,368
25,140
47,674
22,889
172,213
17,613
24,616
60,045
27,265
Cost of Sales
48,175
32,305
27,920
32,648
54,381
37,715
32,844
37,690
58,037
41,977
35,615
40,377
131,376
141,048
162,630
176,006
180,024
Gross Profit
30,176
20,591
17,488
19,931
33,912
23,422
20,421
23,335
35,885
27,140
23,759
26,605
84,263
88,186
101,090
113,389
121,729
38.5%
38.9%
38.5%
37.9%
38.4%
38.3%
38.3%
38.2%
38.2%
39.3%
40.0%
39.7%
39.1%
38.5%
38.3%
39.2%
40.3%
6,817
6,494
6,720
6,811
7,638
7,528
7,809
8,000
9,298
8,778
8,906
9,076
24,239
26,842
30,975
36,058
38,605
2,871
3,946
2,776
3,718
2,937
3,783
2,997
3,814
3,407
4,231
3,378
4,150
3,701
4,108
3,738
4,263
4,320
4,978
4,078
4,700
4,216
4,691
4,253
4,823
10,045
14,194
11,581
15,261
14,224
16,752
16,867
19,191
18,225
20,380
Operating Income
23,359
14,097
10,768
13,120
26,274
15,894
12,612
15,335
26,587
18,362
14,853
17,529
60,024
61,344
70,115
77,330
83,123
PTOP Margin
29.8%
26.7%
23.7%
25.0%
29.8%
26.0%
23.7%
25.1%
28.3%
26.6%
25.0%
26.2%
27.8%
26.8%
26.6%
26.7%
27.5%
821
24,180
587
14,684
540
11,308
797
13,917
756
27,030
274
16,168
672
13,284
305
15,640
486
27,073
558
18,921
484
15,337
471
17,999
1,348
61,372
2,745
64,089
2,007
72,122
2,000
79,330
1,809
84,933
GAAP Income Tax Provision
6,289
Operating Tax Provision (excl one time tax effect) 6,289
Effective Tax Rate
26.0%
3,655
3,655
24.9%
2,591
2,591
22.9%
3,203
3,203
23.0%
6,965
6,965
25.8%
2,346
2,346
14.5%
1,765
1,765
13.3%
2,346
2,346
15.0%
4,061
4,061
15.0%
2,838
2,838
15.0%
2,301
2,301
15.0%
2,700
2,700
15.0%
15,685
15,685
25.6%
15,738
15,738
24.6%
13,422
13,422
18.6%
11,900
11,900
15.0%
12,740
12,740
15.0%
Operating Net Income
17,891
11,029
8,717
10,714
20,065
13,822
11,519
13,294
23,012
16,082
13,037
15,300
45,687
48,351
58,700
67,431
72,193
22.8%
20.9%
19.2%
20.4%
22.7%
22.6%
21.6%
21.8%
24.5%
23.3%
22.0%
22.8%
21.2%
21.1%
22.3%
23.3%
23.9%
($ in millions)
Revenues
iPhone
iPad
Mac
Services
Other Products
Gross Margin
Operating Expenses
Research and Development
Selling, General and Administrative
Total Interest & Other Income
Pretax Income
Operating Net Income Margin
Total Non-recurring Charges
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
17,891
11,029
8,717
10,714
20,065
13,822
11,519
13,294
23,012
16,082
13,037
15,300
45,687
48,351
58,700
67,431
72,193
$3.36
$2.10
$1.67
$2.07
$3.89
$2.73
$2.34
$2.75
$4.86
$3.47
$2.87
$3.44
$8.31
$9.21
$11.75
$14.69
$17.11
EPS - Reported
$3.36
EPS - ModelWare excl. Stock Option Expense $3.59
$2.10
$2.33
$1.67
$1.89
$2.07
$2.29
$3.89
$4.14
$2.73
$2.99
$2.34
$2.61
$2.75
$3.03
$4.86
$5.15
$3.47
$3.81
$2.87
$3.21
$3.44
$3.77
$8.31
$9.07
$9.21
$10.13
$11.75
$12.81
$14.69
$16.00
$17.11
$18.49
3,130
$0.59
3,004
$0.57
3,365
$0.65
3,270
$0.64
3,339
$0.65
3,190
$0.63
3,653
$0.75
3,530
$0.74
3,553
$0.76
3,380
$0.74
3,697
$0.82
3,562
$0.81
12,150
$2.22
12,769
$2.45
13,712
$2.77
14,192
$3.12
14,320
$3.44
5,255.4
5,298.7
5,328.0
5,205.8
5,225.8
5,261.7
5,169.8
5,195.1
5,233.5
5,126.2
5,149.4
5,183.6
5,081.7
5,112.9
5,157.8
4,943.3
5,024.9
5,068.5
4,842.9
4,882.2
4,926.6
4,740.4
4,791.7
4,838.3
4,639.7
4,690.1
4,737.7
4,540.7
4,590.2
4,638.7
4,443.5
4,492.1
4,541.6
4,348.2
4,395.8
4,446.4
5,336.2
5,470.8
5,500.3
5,126.2
5,217.2
5,251.7
4,740.4
4,952.9
4,997.8
4,348.2
4,542.0
4,591.1
3,988.1
4,166.3
4,219.4
GAAP Net Income
Fully-diluted EPS
EPS - ModelWare
Dividend Payment
Dividend Per Share
Period Ending Outstanding Shares
Avg Shares (Basic)
Avg Shares (Fully Diluted)
Source: Company Data, Morgan Stanley Research
11
Exhibit 10: Apple Income Statement Analysis
($ in millions)
Margin Analysis
Gross Margin
iPhone
iPad
Mac
Services
Other Products
R&D
SG&A
Operating Expenses
EBITDA Margin
PTOP Margin
Pretax Margin
Net Income
Year-Over-Year Growth (%)
Revenue
iPhone
iPad
Mac
Services
Other Products
Gross Margin
iPhone
iPad
Mac
Services
Other Products
R&D
SG&A
Dec-16
2017A
Mar-17
Jun-17
Sep-17
Dec-17
2018E
Mar-18
Jun-18
Sep-18
Dec-18
2019E
Mar-19
Jun-19
Sep-19
2016A
2017A
Fiscal Year
2018E
2019E
2020E
38.5%
38.9%
38.5%
37.9%
38.4%
38.3%
38.3%
38.2%
38.2%
39.3%
40.0%
39.7%
39.1%
38.5%
38.3%
39.2%
40.3%
39.3%
24.5%
24.5%
58.0%
38.3%
3.7%
5.0%
8.7%
29.8%
29.8%
30.9%
22.8%
39.5%
24.0%
24.0%
57.0%
38.6%
5.2%
7.0%
12.3%
26.9%
26.7%
27.8%
20.9%
38.5%
24.5%
25.0%
58.5%
38.6%
6.5%
8.3%
14.8%
23.9%
23.7%
24.9%
19.2%
37.3%
24.5%
25.0%
58.5%
38.3%
5.7%
7.3%
13.0%
25.1%
25.0%
26.5%
20.4%
38.4%
25.0%
25.0%
58.5%
38.7%
3.9%
4.8%
8.7%
29.9%
29.8%
30.6%
22.7%
37.2%
24.0%
24.0%
58.5%
38.1%
5.5%
6.8%
12.3%
26.2%
26.0%
26.4%
22.6%
36.7%
24.0%
24.0%
58.5%
38.8%
6.9%
7.7%
14.7%
23.9%
23.7%
24.9%
21.6%
36.8%
24.5%
24.5%
59.0%
39.0%
6.1%
7.0%
13.1%
25.4%
25.1%
25.6%
21.8%
37.2%
25.0%
25.0%
59.3%
39.0%
4.6%
5.3%
9.9%
28.5%
28.3%
28.8%
24.5%
37.2%
25.0%
25.0%
59.0%
39.0%
5.9%
6.8%
12.7%
26.9%
26.6%
27.4%
23.3%
37.5%
25.0%
25.0%
59.5%
39.0%
7.1%
7.9%
15.0%
25.5%
25.0%
25.8%
22.0%
37.5%
25.0%
25.0%
59.5%
39.0%
6.4%
7.2%
13.6%
26.9%
26.2%
26.9%
22.8%
41.1%
23.6%
23.9%
56.1%
37.4%
4.7%
6.6%
11.2%
32.7%
27.8%
28.5%
21.2%
38.8%
24.4%
24.6%
58.0%
38.4%
5.1%
6.7%
11.7%
31.2%
26.8%
28.0%
21.1%
37.5%
24.4%
24.4%
58.6%
38.6%
5.4%
6.4%
11.7%
31.1%
26.6%
27.3%
22.3%
37.3%
25.0%
25.0%
59.3%
39.0%
5.8%
6.6%
12.5%
30.8%
26.7%
27.4%
23.3%
37.5%
25.0%
25.0%
59.9%
39.0%
6.0%
6.8%
12.8%
32.2%
27.5%
28.1%
23.9%
3%
5%
7%
12%
13%
16%
17%
16%
6%
13%
11%
10%
-8%
6%
15%
10%
4%
5%
-22%
7%
18%
-8%
1%
-12%
14%
18%
31%
3%
2%
7%
22%
23%
2%
14%
25%
34%
36%
13%
6%
-5%
18%
36%
14%
6%
0%
31%
38%
20%
-5%
-5%
31%
37%
21%
4%
-6%
18%
36%
3%
-1%
3%
28%
23%
11%
-1%
3%
28%
30%
7%
-4%
3%
27%
38%
5%
-2%
-2%
29%
32%
-12%
-11%
-10%
22%
11%
3%
-7%
13%
23%
16%
16%
3%
-4%
24%
37%
6%
-2%
1%
28%
30%
-1%
-9%
-2%
26%
19%
-1%
3%
9%
12%
12%
14%
17%
17%
6%
16%
16%
14%
-10%
5%
15%
12%
7%
-4%
-19%
10%
24%
-4%
19%
3%
-3%
-10%
14%
20%
36%
11%
9%
1%
6%
11%
26%
28%
15%
10%
-2%
18%
33%
39%
36%
17%
10%
11%
8%
-3%
19%
38%
19%
7%
8%
6%
0%
34%
36%
22%
12%
15%
-7%
-9%
31%
37%
26%
9%
19%
4%
-8%
19%
38%
25%
12%
0%
-1%
3%
30%
25%
27%
18%
11%
3%
7%
29%
33%
21%
13%
10%
0%
7%
29%
38%
14%
14%
7%
0%
0%
30%
32%
14%
13%
-16%
-15%
-12%
25%
17%
25%
-1%
-2%
-4%
17%
27%
19%
15%
8%
12%
3%
-5%
25%
37%
23%
10%
6%
0%
4%
30%
31%
19%
15%
-1%
-9%
-2%
27%
19%
8%
6%
Operating Expenses
9%
9%
12%
13%
12%
16%
16%
17%
22%
17%
14%
13%
8%
11%
15%
16%
7%
PTOP Margin
Pretax Margin
Net Income
ModelWare EPS
-3%
-2%
-3%
2%
1%
4%
5%
10%
7%
8%
12%
17%
12%
14%
19%
24%
12%
12%
12%
16%
13%
10%
25%
30%
17%
17%
32%
40%
17%
12%
24%
33%
1%
0%
15%
25%
16%
17%
16%
27%
18%
15%
13%
23%
14%
15%
15%
25%
-16%
-15%
-14%
-10%
2%
4%
6%
11%
14%
13%
21%
28%
10%
10%
15%
25%
7%
7%
7%
16%
63%
10%
11%
11%
5%
62%
8%
11%
13%
6%
62%
7%
9%
14%
7%
60%
7%
9%
16%
8%
57%
6%
8%
20%
9%
Sequential Growth (%)
Revenue
67%
-32%
-14%
16%
68%
-31%
-13%
15%
54%
-26%
-14%
13%
iPhone
iPad
Mac
Services
Other Products
93%
30%
26%
13%
70%
-39%
-30%
-19%
-2%
-29%
-25%
28%
-4%
3%
-5%
16%
-3%
28%
17%
18%
113%
21%
-4%
0%
70%
-38%
-30%
-15%
8%
-28%
-21%
15%
-9%
4%
-5%
17%
6%
26%
5%
17%
82%
16%
5%
8%
54%
-34%
-30%
-15%
8%
-24%
-24%
11%
-9%
3%
0%
15%
9%
20%
6%
13%
Gross Margin
69%
-32%
-15%
14%
70%
-31%
-13%
14%
54%
-24%
-12%
12%
iPhone
iPad
Mac
Services
Other Products
R&D
SG&A
94%
36%
32%
16%
70%
12%
13%
-38%
-31%
-21%
-4%
-28%
-3%
-6%
-27%
30%
0%
6%
-5%
6%
2%
12%
-3%
28%
17%
17%
2%
1%
120%
24%
-4%
0%
72%
14%
11%
-40%
-33%
-19%
8%
-29%
-1%
-2%
-22%
15%
-9%
4%
-4%
10%
-1%
17%
8%
29%
6%
18%
1%
4%
84%
18%
7%
9%
54%
16%
17%
-34%
-30%
-15%
8%
-24%
-6%
-6%
-23%
11%
-9%
4%
0%
3%
0%
15%
9%
20%
6%
13%
1%
3%
Operating Expenses
PTOP Margin
Pretax Margin
Net Income
ModelWare EPS
13%
-5%
3%
1%
12%
-1%
4%
2%
16%
-6%
1%
2%
99%
98%
98%
101%
-40%
-39%
-38%
-38%
-24%
-23%
-21%
-21%
22%
23%
23%
24%
100%
94%
87%
88%
-40%
-40%
-31%
-30%
-21%
-18%
-17%
-14%
22%
18%
15%
18%
73%
73%
73%
77%
-31%
-30%
-30%
-29%
-19%
-19%
-19%
-17%
18%
17%
17%
20%
69%
7%
9%
9%
5%
63%
7%
11%
13%
5%
55%
11%
12%
16%
6%
55%
9%
14%
16%
6%
70%
7%
8%
10%
6%
62%
7%
10%
15%
6%
56%
9%
10%
18%
7%
57%
8%
11%
16%
7%
67%
6%
8%
12%
7%
61%
6%
9%
17%
7%
54%
8%
9%
20%
9%
55%
7%
10%
19%
9%
Revenue Mix
iPhone
iPad
Mac
Services
Other Products
Source: Company Data, Morgan Stanley Research
12
Exhibit 11: Apple Balance Sheet
($ in millions)
Dec-16
2017A
Mar-17
Jun-17
Sep-17
Dec-17
2018E
Mar-18
Jun-18
Sep-18
Dec-18
2019E
Mar-19
Jun-19
Sep-19
2016A
2017A
2018E
2019E
2020E
Assets
Current Assets:
Cash and cash equivalents
Short-term investments
Accounts receivable
Inventories
Deferred tax assets
Other current assets
16,371
229,719
14,057
2,712
5,546
20,565
15,157
241,684
11,579
2,910
5,546
14,854
18,571
242,945
12,399
3,146
5,546
15,025
20,289
248,606
17,874
4,855
5,546
26,189
27,491
257,606
23,440
4,421
5,546
33,250
45,059
222,167
14,324
7,662
5,546
14,581
31,971
211,772
14,104
5,936
5,546
19,205
24,573
211,772
19,236
6,145
5,546
25,631
34,513
211,772
26,089
7,738
5,546
28,909
66,267
161,772
18,988
4,613
5,546
17,451
60,118
161,772
15,489
3,484
5,546
19,205
50,936
161,772
21,842
3,511
5,546
25,631
20,484
217,101
15,754
2,132
5,546
16,282
20,289
248,606
17,874
4,855
5,546
26,189
24,573
211,772
19,236
6,145
5,546
25,631
50,936
161,772
21,842
3,511
5,546
25,631
82,195
111,772
22,117
3,607
5,546
28,434
288,970
291,730
297,632
323,359
351,754
309,339
288,534
292,904
314,568
274,637
265,614
269,238
277,299
323,359
292,904
269,238
253,671
Property, Plant & Equipment, net 26,510
Acquired Intangible Assets
8,271
Other assets
7,390
Non-current debt and equity investments-
27,163
8,090
7,549
-
29,286
8,105
10,150
-
33,783
8,015
10,162
-
33,679
8,038
13,323
-
35,077
8,687
14,399
-
38,117
8,484
14,062
-
38,413
8,496
14,227
-
39,079
8,510
13,989
-
40,145
8,524
15,119
-
41,107
8,540
14,765
-
42,666
8,556
14,938
-
27,010
8,620
8,757
-
33,783
8,015
10,162
-
38,413
8,496
14,227
-
42,666
8,556
14,938
-
46,682
8,628
15,685
-
42,171
331,141
42,802
334,532
47,541
345,173
51,960
375,319
55,040
406,794
58,163
367,502
60,663
349,197
61,137
354,040
61,579
376,146
63,789
338,426
64,412
330,027
66,160
335,397
44,387
321,686
51,960
375,319
61,137
354,040
66,160
335,397
70,995
324,666
Accounts payable
Accrued expenses
Current Debt
Other current liabilities
38,510
31,628
13,992
-
28,573
30,778
13,991
-
31,915
30,912
18,475
-
49,049
33,292
18,473
-
62,985
34,325
18,478
-
34,311
34,531
20,478
-
38,489
32,587
17,472
-
47,113
37,566
17,472
-
66,420
39,061
17,472
-
38,748
34,868
17,472
-
41,035
33,258
17,472
-
49,593
36,914
17,472
-
37,294
30,107
11,605
-
49,049
33,292
18,473
-
47,113
37,566
17,472
-
49,593
36,914
17,472
-
51,853
39,832
17,472
-
Total Current Liabilities
Non-Current Liabilities
84,130
73,342
81,302
100,814
115,788
89,320
88,548
102,151
122,953
91,088
91,765
103,979
79,006
100,814
102,151
103,979
109,157
Long-term debt
73,557
Deferred revenue - non-current 3,163
Deferred tax liabilities
37,051
Other non-current liabilities
850
84,531
3,107
38,620
850
89,864
2,984
37,748
850
97,207
2,836
39,565
850
103,922
3,131
42,904
850
101,362
3,087
46,005
850
97,128
2,878
44,844
850
97,128
2,917
44,844
850
97,128
3,267
44,844
850
97,128
3,040
44,844
850
97,128
3,006
44,844
850
97,128
2,880
44,844
850
75,427
2,930
35,224
850
97,207
2,836
39,565
850
97,128
2,917
44,844
850
97,128
2,880
44,844
850
97,128
2,966
44,844
850
127,108
200,450
131,446
212,748
140,458
241,272
150,807
266,595
151,304
240,624
145,700
234,248
145,739
247,890
146,089
269,042
145,862
236,950
145,828
237,593
145,702
249,681
114,431
193,437
140,458
241,272
145,739
247,890
145,702
249,681
145,788
254,945
Total Current Assets
Total Fixed Assets
Total Assets
Liabilities
Current Liabilities:
Total Non-Current Liabilities
Total Liabilities
Series A preferred stock
114,621
198,751
-
Total Shareholder's Equity
132,390
Total Liabilities and Shareholder's 331,141
Equity
134,082
334,532
132,425
345,173
134,047
375,319
140,199
406,794
126,878
367,502
114,949
349,197
106,151
354,040
107,104
376,146
101,476
338,426
92,434
330,027
85,716
335,397
128,249
321,686
134,047
375,319
106,151
354,040
85,716
335,397
69,722
324,666
Source: Company Data, Morgan Stanley Research
13
Exhibit 12: Apple Cash Flow Statement
Dec-16
2017A
Mar-17
Jun-17
Sep-17
Dec-17
2018E
Mar-18
Jun-18
Sep-18
Dec-18
2019E
Mar-19
Jun-19
Sep-19
17,891
11,029
8,717
10,714
20,065
13,822
11,519
13,294
23,012
16,082
13,037
15,300
45,687
Cumulative effect of accounting change
Adjustments to reconcile net income:
Depreciation & Amortization
2,987
Stock based compensation expense
1,256
Provision for (benefit from) deferred income 1,452
taxes
Gain on non-current investments, net
Gain on short-term investments, net
Unrealized loss on conv. securities
Loss on sale of PP&E
Non-cash restructuring
In-Process R&D
Tax benefit from ESO
Changes in Operating Assets and Liabilities:
Accounts receivable
1,697
Inventories
(580)
Other current assets
(1,446)
Other assets
(375)
Accounts payable
2,460
Deferred revenue
42
Accrued restructuring costs
Other current liabilities
1,672
Deferred tax liabilities
-
2,332
1,217
1,370
-
2,354
1,193
1,942
-
2,484
1,174
1,202
-
2,745
1,296
(33,737)
-
2,739
1,348
(498)
-
2,665
1,351
1,126
-
-
-
-
-
-
-
3,875
1,343
-
3,106
1,409
-
2,836
1,590
-
2,875
1,544
-
2,974
1,474
-
2,486
(198)
550
4,887
(9,322)
(263)
(1,565)
-
(802)
(236)
(2,333)
(1,200)
1,650
(197)
(2,725)
-
(5,474)
(1,709)
(2,089)
(7,566)
14,830
(208)
2,298
-
(5,570)
434
(197)
(9,660)
14,588
791
37,538
-
9,093
(3,241)
(856)
19,375
(27,808)
(313)
1,469
-
233
1,693
988
(4,179)
2,081
(581)
(2,408)
-
(5,132)
(209)
(6,426)
(165)
8,624
39
4,979
-
(6,853)
(1,593)
(3,278)
238
19,307
350
1,495
-
7,101
3,125
11,458
(1,130)
(27,672)
(227)
(4,193)
-
3,499
1,129
(1,754)
354
2,286
(33)
(1,610)
-
($ in millions)
2016A
2017A
2018E
2019E
2020E
48,351
58,700
67,431
72,193
-
-
-
-
10,505
4,210
4,938
-
10,157
4,840
5,966
-
12,024
5,338
(33,109)
-
11,791
6,016
-
13,950
5,824
-
(6,353)
(27)
(6,426)
(173)
8,559
(126)
3,656
-
1,095
217
(51)
1,090
1,791
(1,554)
(2,104)
-
(2,093)
(2,723)
(5,318)
(4,254)
9,618
(626)
(320)
-
(1,376)
(1,323)
(6,491)
5,371
(2,515)
(64)
41,578
-
(2,605)
2,634
(711)
2,480
(37)
(652)
-
(275)
(96)
(2,803)
(747)
2,260
86
2,918
-
65,824
63,598
78,132
86,346
93,309
(142,428) (159,486)
21,258
31,775
90,536
94,564
(12,734) (12,451)
(2,499)
(344)
(110)
(504)
(56,133)
46,290
41,614
119
(14,448)
(557)
(2,001)
50,000
514
(16,113)
(504)
-
50,000
592
(18,126)
(504)
-
Cash Flow Statement (Non Cumulative)
Operating activities:
Net Income / (Loss)
Net Cash Provided by Operating Activities
27,056
12,523
8,363
15,656
28,293
15,130
14,488
20,221
37,192
8,971
21,327
18,857
Investing activities:
Purchase of short-term investments
(54,272)
Proceeds from maturities of short-term investments
6,525
Proceeds from sales of short-term investments32,166
Purchases of long-term investments
Net Proceeds from sale of PP&E
Purchase of PP&E
(3,334)
Cash paid for acquisition of technology
(103)
Proceeds from sale of ARM shares
Other
(104)
(45,549)
5,904
28,288
(2,975)
(90)
220
(23,960)
6,918
16,293
(2,277)
(351)
197
(35,705)
12,428
17,817
(3,865)
200
(817)
(41,272)
14,048
16,801
(2,810)
(154)
(203)
(7,177)
17,836
22,141
(4,195)
(151)
256
(7,684)
14,406
2,672
(3,267)
(126)
(2,054)
119
(4,176)
(126)
-
119
(3,779)
(126)
-
50,000
124
(3,914)
(126)
-
133
(3,860)
(126)
-
138
(4,560)
(126)
-
Net cash used in investing activities
(14,202)
(3,180)
(9,942)
(13,590)
28,710
3,947
(4,184)
(3,786)
46,084
(3,852)
(4,548)
(45,977)
(46,446)
14,883
33,897
31,962
Financing activities:
Proceeds from issuance of common stock
273
Excess tax benefits from stock-based compensation
178
47
Taxes paid related to net share settlement of equity
(629)
awards (159)
Dividends and dividend equivalent rights paid (3,130)
(3,004)
Repurchase of common stock
(10,851)
(7,161)
Increase (decrease) in long-term borrowings
10,975
Increase (decrease) in notes payable to banks 2,385
(506)
(19,122)
1
309
(858)
(3,365)
(7,093)
10,750
(1,513)
281
93
(228)
(3,270)
(7,795)
6,937
(14)
(1,038)
(3,339)
(10,095)
6,971
-
327
(152)
(3,190)
(22,756)
(502)
1
1
(1,077)
(3,653)
(20,783)
(6,000)
(11)
95
(3,530)
(20,000)
-
86
(3,553)
(20,000)
-
80
(3,380)
(20,000)
-
75
(3,697)
(20,000)
-
71
(3,562)
(20,000)
-
495
407
(1,570)
(12,150)
(29,722)
22,454
(397)
555
627
(1,874)
(12,769)
(32,900)
28,662
352
423
(2,267)
(13,712)
(73,634)
469
(10)
312
(14,192)
(80,000)
-
309
(14,320)
(80,000)
-
Net Cash used in Financing Activities
(12,047)
Increase/(decrease) in Cash and Cash Equivalents
(4,113)
465
(1,214)
(1,769)
3,414
(3,996)
1,718
(7,501)
7,202
(26,272)
17,568
(31,523)
(13,088)
(23,435)
(7,398)
(23,467)
9,940
(23,301)
31,754
(23,622)
(6,148)
(23,491)
(9,183)
(20,483)
(636)
(17,347)
(195)
(88,731)
4,284
(93,881)
26,363
(94,011)
31,259
Adjustments for restatements
Cash and Cash Equivalents at Beginning of Period
20,484
16,371
15,157
18,571
20,289
27,491
45,059
31,971
24,573
34,513
66,267
60,118
21,120
20,484
20,289
24,573
50,936
Cash and Cash Equivalents at End of Period 16,371
15,157
18,571
20,289
27,491
45,059
31,971
24,573
34,513
66,267
60,118
50,936
20,484
20,289
24,573
50,936
82,195
Source: Company Data, Morgan Stanley Research
14
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15
COVERAGE UNIVERSE
STOCK RATING
CATEGORY
Overweight/Buy
Equal-weight/Hold
Not-Rated/Hold
Underweight/Sell
TOTAL
INVESTMENT BANKING CLIENTS (IBC)
OTHER MATERIAL
INVESTMENT SERVICES
CLIENTS (MISC)
COUNT
% OF
TOTAL
COUNT
% OF
TOTAL IBC
% OF
RATING
CATEGORY
COUNT
% OF
TOTAL
OTHER
MISC
1156
1363
50
553
37%
44%
2%
18%
296
348
5
82
40%
48%
1%
11%
26%
26%
10%
15%
546
635
7
223
39%
45%
0%
16%
3,122
731
1411
Data include common stock and ADRs currently assigned ratings. Investment Banking Clients are companies from whom Morgan Stanley received investment
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INDUSTRY COVERAGE: IT Hardware
COMPANY (TICKER)
RATING (AS OF)
PRICE* (09/12/2018)
O (05/26/2009)
E (08/06/2013)
U (08/03/2017)
O (01/23/2018)
E (01/23/2018)
O (02/18/2016)
E (09/25/2011)
E (01/23/2018)
E (05/10/2017)
E (05/18/2017)
O (04/09/2018)
E (08/27/2018)
E (01/23/2018)
++
$221.07
$88.98
$32.51
$16.40
$24.60
$146.57
$28.28
$85.19
$51.48
$28.40
$49.47
$17.16
$39.60
$27.40
U (04/01/2018)
E (01/07/2015)
U (01/23/2018)
$5.53
$68.45
$6.35
Katy L. Huberty, CFA
Apple, Inc. (AAPL.O)
CDW Corporation (CDW.O)
Electronics for Imaging Inc (EFII.O)
Hewlett Packard Enterprise (HPE.N)
HP Inc. (HPQ.N)
IBM (IBM.N)
NCR Corp. (NCR.N)
NetApp Inc (NTAP.O)
Nutanix Inc (NTNX.O)
Pure Storage Inc (PSTG.N)
Seagate Technology (STX.O)
Sonos Inc. (SONO.O)
Teradata (TDC.N)
Xerox Corp (XRX.N)
Yuuji Anderson
Fitbit Inc (FIT.N)
Garmin Ltd (GRMN.O)
GoPro Inc (GPRO.O)
Stock Ratings are subject to change. Please see latest research for each company.
* Historical prices are not split adjusted.
© 2018 Morgan Stanley
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