Morgan Stanley ups Apple price target to $115 per share from $110

Commenting on last night’s results out of tech-giant Apple analysts at Morgan Stanley wrote to clients saying that: “We see strong iPhone demand, gross margin expansion and under-ownership driving upside to shares. Results and guidance were better than expected despite FX headwinds pressuring estimates across large-cap tech.”

First and foremost the analysts highlighted how the average selling price (ASP) for the iPhone beat their estimate by 8% on the back of strong iPhone 6 demand and mix.

That, they believe, suggests mid-single digit ASP growth over the iPhone 6 cycle versus a flat or down showing over the prior three cycles.

The US broker lifted its price target on the company’s shares to $115 from $110.