Why the Apple Stock Price Broke $100 Today (AAPL) By David Zeiler

AAPL stock is now up 25.43% year to date, compared to just 7.2% for the Standard & Poor's 500 index.

Given all the excitement about fall product launches, including the iPhone 6 and the long-rumored iWatch, it was only a matter of time before Apple shares crossed the $100 mark. But today's Morgan Stanley (NYSE: MS) report by analyst Katy Huberty and another by RBC Capital analyst Amit Daryanani forced the issue.

"We recommend adding to positions into the iPhone 6 + iWatch product cycles," Huberty said.

While Daryanani's report focused on the iPhone 6, Huberty listed eight catalysts for Apple stock, and raised her price target from $99 to $110 with an "Overweight" rating.

First and foremost, there's the iPhone 6, which is expected to debut at a special event Sept. 9.

Supply chain data has forced Daryanani to reconsider his iPhone 6 estimate of 65 million units sold.

"Most supply chain data is pointing towards Apple gearing up to ramp 70-80 million iPhone 6 units across the two form factors (4.7"/5.5")," Daryanani said. "This is a notable uptick from last year when the supply chain ramped 50-60 million units."

Meanwhile, Huberty noted that iPhone loyalty has increased from 73% in December 2011 to 90% in March. The iPhone accounts for more than half of Apple's profits.

But Huberty didn't stop there. Here are some of her other reasons for being so high on AAPL stock right now:

• The iWatch: Huberty believes the iWatch will be bigger than most people think. "We believe iWatch is an underappreciated market opportunity with the potential for up to 60M shipments in the first year," she said, estimating it will have margins in excess of 40%.

• Earnings estimates up: Huberty notes that AAPL earnings estimates have been rising lately, and she expects them to continue to rise after the fall product launches and sales of the new products exceed expectations.

• Vibrant new blood: This year Apple has added several heavy hitters to its executive roster, including new retail chief Angela Ahrendts, former CEO of Burberry; Kevin Lynch, the former CTO of Adobe; Paul Deneve, from Yves Saint Laurent; and Dr. Dre, Jimmy Iovine, and Ian Rogers from Beats.

• Research spending up: Apple's R&D spending is on a pace to grow 60% year over year in the fourth quarter. Huberty says that, and a spike in acquisitions, shows that AAPL has plans to extend its iOS mobile platform beyond the iPhone and the iPad.

• Music and app revenue up: Few have noticed, but Apple's revenue from the iTunes Store, including music and apps, has been growing steadily. Huberty says the iTunes business is now accretive to overall margins and corporate growth.

• Cash back to shareholders: After ramping up share buybacks and hiking the dividend, Huberty estimates Apple will have a total yield of 8.5% this year. As the programs continue, AAPL stock will benefit.

For updates on Apple stock and other technology news, follow me on Twitter @DavidGZeiler.

UP NEXT: Apple has a lot of good stuff in the pipeline, but another initiative on the horizon has  just as good a chance - if not better - to move the needle on AAPL stock over the next year. This is a $626 billion opportunity for the company...

Related Articles:

• MarketWatch: 7 Reasons Why This Product Cycle Will Be Different for Apple
• Business Insider: RBC: The iPhone 6 Could Be Even Bigger Than Anyone Thinks