Apple Inc. AAPL 0.2% will host its Worldwide Developers Conference in San Jose, California June 4, but investors hoping for a game-changing product or service to emphasize the bullish case for owning the stock may be disappointed, according to KeyBanc Capital Markets.

The Analyst

KeyBanc’s Andy Hargreaves maintains a Sector Weight rating on Apple’s stock with an unchanged $175 price target.

The Thesis

Apple continues to transition from focusing on growing its business through expanding total users toward one where it can better monetize existing users, Hargreaves said in a research report. (See the analyst’s track record here.)

The overall focus of Apple’s event should be on this transition as management details how it will make services and ancillary products more attractive, the analyst said.

Here’s a summary of what Hargreaves said investors can expect from the event:

Business chat was introduced at WWDC 2017 and can be expanded to include iMessage and Apple Pay.

  • Sleep tracking features could be integrated with the Apple Watch OS5.
  • New capabilities, including multiperson interaction, could be introduced to the ARKit.
  • Apple’s acquisition of Texture could signal greater ambitions in magazine distribution and bundling.
  • A video service is unlikely to be introduced, as a 2019 launch is more likely.
  • iPhone SE2 could be updated but is unlikely to warrant a material change to iPhone sales estimates.
  • Hardware updates could be introduced, including a potential entry-level MacBook Air.
  • A new Mac Pro has been hinted at and could be introduced, but it will remain a “relatively low-volume” product.

Price Action

Apple shares were down 0.44 percent at the time of publication Thursday.