Katy Huberty, an analyst at Morgan Stanley, suggested that now is the right time to purchase shares of Apple, ahead of the company’s launch of the next-generation iPhone.
Her reasoning this time: Institutional ownership of Apple as a percentage of total funds is at a historic low. She assumes the smart money is going to rotate back into Apple with the iPhone 6 coming this year, and the iWatch perhaps also coming this year.
Huberty expects larger investors to be buying into Apple shares later this year in order to ride on the expected success of the new iPhone and possible a new wearable watch-like device.
Apple is expected to preview iOS 8 and Mac OS X 10.10 at their WorldWide Developers Conference, which is only a couple of weeks away. The company is reportedly planning to launch its next-generation iPhone, the iPhone 6, in the August-September timeframe, with the health and fitness-focused iWatch coming sometime in the second half of this year.
The iPhone 6 is rumoured to feature a 4.7-inch screen, with a completely new design. Rumours also point to a second model of the iPhone 6 with a 5.5-inch screen, which will reportedly launch later in the year.
[via Business Insider]