Morgan Stanley Says Buy Apple For Its Services Business

Investing.com - Morgan Stanley (NYSE:MS) says Apple is a different company than it was five years ago and that investors are undervaluing the growing contribution of its services business.In a note to clients, the firm estimates that 67% of the company's sales growth will be in services in five years.In particular, Morgan thinks investors are overlooking Apple's strong AppStore business, which "has significant growth runway ahead."Apple has said it wants to double services revenue by 2021. Revenue rose 28% from a year ago in the first quarter, while iPhone sales were basically flat. Morgan Stanley raised its 12-month, stock price target from $200 to $214 and also reiterated its overweight rating.Apple shares (NASDAQ:AAPL) are up 16% in the past 12 months and are near a record high.