Apple Adds 1% as Morgan Stanley Boosts Demand Estimates

Shares of Apple Inc. (AAPL) gained Thursday after Morgan Stanley analysts raised their demand forecasts for the iPhone and Apple Watch, noting that iPhone demand “continues to track above consensus” and that demand for the Watch has jumped following the launch, Barron’s reported.

For the iPhone, the firm sees June quarter demand at 50 million units, up from a previous estimate of 46 million units. Morgan Stanley also raised its FY15 and FY16 estimate by 5% and 7% to 240 million and 249 million, respectively.

For the Apple Watch, the firm expects Apple to sell 36 million units in the first 12 months it’s on sale, up from a previous estimate of 30 million units. The broker reiterated an overweight rating and price target of $166 on Apple. AAPL shares recently traded near the top end of the 52-week range of $86.01 to $134.54.