Apple is still cheap at $2 trillion, Morgan Stanley says

Apple CEO Tim Cook greets attendees during a special event in the Steve Jobs Theater on Apple's Cupertino, California campus.
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Apple's historic surge should continue until the market fairly values all the parts of the business, Morgan Stanley said in a new note.

The tech stock went on a tear last week, gaining 8.5% in four sessions and becoming the first U.S. company to reach $2 trillion in market cap. Still, Morgan Stanley argued that the company is undervalued based on its free cash flow versus its tech peers, and the firm raised its price target on the stock. 

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