The Apple logo Is Pictured Inside The Newly Opened Omotesando Apple Store
The Apple logo is pictured inside the newly opened Omotesando Apple store at a shopping district in Tokyo in this file photo taken June 26, 2014. Reuters/YUYA SHINO

Wall Street analysts remain generally bullish on Apple stock with a price target of $112 on an 18-month average. Morgan Stanley has included Apple in its list of "Best Ideas" in stock investments, Forbes reports. Analyst Katy Huberty believes Apple stock is set to soar in the coming months.

Huberty explained that Apple's profit margins are growing and when such figures increase, the stock price will follow suit. Thanks to the well-received launch of the iPhone 6 and iPhone 6 Plus, Apple can expect to see higher margins, he said.

Morgan Stanley continues to have an Overweight rating for Apple stock with a $110 price target. Huberty said Apple's revenue guidance should be similar to Wall Street's $63.4 billion. Apple has not revealed its earnings per share guidance, but market analysts believe the company will have a $2.39 EPS for the December quarter.

Meanwhile, Apple shares dropped by 1.3 percent or $1.28 at $96.26 on Oct. 16 as investors hoped the launch of the company's newest iPads would reignite the market's excitement for the aging product line. According to UBS analyst Steven Milunovich, iPad sales have "gone flat" as tablet owners take longer to replace their current devices. He believes the release of newer iPads may be "insufficient" to reinvigorate sales.

Apple's iPad sales have stagnated as iPad owners tend to hold on to their tablets longer than their smartphones. The iPad's market performance is affected by lower cost options and rival tablets with PC capabilities. Milunovich suggested that Apple's agreement with IBM to put more iPads in the corporate world may not be enough. He claimed Apple may need to consider releasing a 13-inch iPad with multitasking capabilities comparable to a PC.

As the iPad 3 Mini and the iPad Air 2 were introduced, the new iPads have failed to impress investors as the Apple shares struggle after reaching the $100 mark. However, Milunovich remains bullish on Apple stock as he set a price target of $115 per share. The analyst is more optimistic about Apple's new iPhones which sold 10 million units on their opening weekend sale.