In a recent analysis, Morgan Stanley identified iPhone maker Apple (NASDAQ:AAPL) as the “most under-owned” large-cap tech stock they monitor, causing shares to jump at the time of writing. The team, spearheaded by analyst Erik Woodring, highlighted that Apple’s active institutional portfolio weighting decreased by 26 basis points to 5.51% in the second quarter. Concurrently, its weight in the S&P 500 jumped by 65 basis points to 7.72%. This spread of 2.21% between active and passive institutional portfolios narrowly surpasses that of Microsoft (NASDAQ:MSFT), which currently sits at 2.2%.
The analysts postulate that this is attributable to Apple’s pronounced presence in market indices, compounded by investor apprehension regarding potential revenue deceleration. Despite this, Morgan Stanley’s findings indicate that Apple’s under-ownership is at its most pronounced since 2008, despite projections pointing towards a 5% increase in EPS estimates for Fiscal Year 2024.
Is AAPL Stock a Buy?
Turning to Wall Street, analysts have a Moderate Buy consensus rating on AAPL stock based on 22 Buys, eight Holds, and zero Sells assigned in the past three months, as indicated by the graphic above. Furthermore, the average price target of $208.13 per share implies 15.51% upside potential.
