Apple: Next Leg Up Will Be From Enterprise Accounts

Mar. 6.08 | About: Apple Inc. (AAPL)

Morgan Stanley is out with an interesting call in Apple (NASDAQ:AAPL) this morning, saying it's increasingly clear that Apple is focused on penetrating enterprise accounts with its Mac and iPhone products. If successful, they view this as a second 'halo effect' that will boost revenue growth and margins beyond what is currently incorporated in consensus models.

Firm sees the possibility of both software/security solutions as well as new customer wins at today's iPhone announcement (scheduled for 10am PST at Apple's headquarters), that will help validate the company's enterprise strategy.

Firm hosted Peter Oppenheimer, Apple's CFO, at Morgan Stanley's Technology conference yesterday. They view Apple's comments on Enterprise and International investments as the most relevant incremental data points that help support the company's growth story.

Beyond today's enterprise-related iPhone announcements, the firm highlights that Apple is investing in both US and International commercial sales people (170 sales people today); is now willing to discuss industry-vertical wins (Oil and Gas, Government etc); and views boot camp and industry-leading mobile products as drivers of potential success in the commercial PC market.

Reits Overweight and $185 target.

Notablecalls: So, the next leg up in AAPL will be coming from the corporate side. The bottom looks to be in. AAPL looks like a buy today.