Apple Shares Could Surge Another 27%, Says Wedbush Analyst

After reaching a market value of two-trillion dollars earlier this week, Apple may yet surge by another 27 percent, according to Wedbush analyst Daniel Ives (via BusinessInsider).

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Ives believes that Apple has the potential to make further significant gains over the next year, even though the company has already hit the milestone two-trillion dollar valuation. He has classified Apple stocks with an "outperform" rating, with a target price of $515 and an optimistic bull case of $600. This prediction would place Apple as much as 27 percent higher than it closed yesterday.

"We still believe the stock has a lot of gasoline left in the tank with an iPhone 12 'supercycle' on the near term horizon," Ives wrote.

Ives described the possibility as a "once in a decade" opportunity, as "we estimate roughly 350 million of Cupertino's 950 million iPhones worldwide are in the window of an upgrade opportunity." He believes in "massive pent-up demand around this supercycle," which is the main indication that Apple's price could surge going into next year. China is also crucial to Ives' analysis, where he sees "considerable strength" that could account for approximately 20 percent of iPhone upgrades over the next twelve to eighteen months.

Beyond the ‌iPhone‌, Ives' thesis places considerable emphasis on Apple's increasing services ventures, which he values between $700 billion to $750 billion. He believes that Apple services could generate more than $60 billion in annual revenue next year alone. He also recognizes the boom in wearables, such as AirPods and Apple Watch, which have seen an increase in sales of 25 million units this year.

Tags: AAPL, Wedbush

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Top Rated Comments

nylonsteel Avatar
50 months ago
do your due diligence when investing
no one can predict the future
its your money
Score: 12 Votes (Like | Disagree)
Andres Cantu Avatar
50 months ago
Apple has added $440 billion to its market cap over the last month, which is more than the current market cap of 493 companies in the S&P 500.

I like Apple products, but this won't end well. Top-heavy S&P 500 is just like the dot-com bubble. The rest of the companies need to participate in the growth, unless they want the whole US to work for just 5 companies.
Score: 9 Votes (Like | Disagree)
mcfrazieriv Avatar
50 months ago
Wonder how much investment Daniel Ives has in Apple stock? Telling all the stupid people that it's bound to keep going up might get them to buy in... has Apple secretly invented the cure to cancer? The services business is the area of growth and the company still offers (more or less) a similar product lineup after 5 years.
Score: 7 Votes (Like | Disagree)
Jmausmuc Avatar
50 months ago

I don't disagree with that. I think at some point unemployment catches up. There's been a lot of demand pulled forward from the future due to the extra unemployment benefits. A lot of people needed them, but there's also a lot of people that didn't and spent it all on tech items.

The Us is doomed.
Most people actually revived more in unemployment benefits than they would have gotten from working.

The FED is throwing money left and right, putting a bad-aid on a larger problem.

this is going to end incredibly bad. Too bad the US is a major economic powerand will drag down everyone else with their ludacris monetsry policies.
Score: 6 Votes (Like | Disagree)
darkslide29 Avatar
50 months ago
When Apple dropped to about $300ish, I had some cash sitting in a trading account and bought S&P stock to not put all my eggs in one basket. Decent gains, but not Apple or Tesla level gains. When Apple hit $400, I had regrets. Now that Apple is near $500, more regret lol.
Score: 5 Votes (Like | Disagree)
Baymowe335 Avatar
50 months ago

Apple has added $440 billion to its market cap over the last month, which is more than the current market cap of 493 companies in the S&P 500.

I like Apple products, but this won't end well. Top-heavy S&P 500 is just like the dot-com bubble. The rest of the companies need to participate in the growth, unless they want the whole US to work for just 5 companies.
Apple’s earnings have zero in common with the dot com bubble stocks.

Apple trades at 33X earnings, which is completely reasonable with a $55B services income stream and 600M paid subscribers with 1.5B active devices.

Apple has just started to get the same respect MSFT got when their multiple expanded. Apple also makes a lot more profit than MSFT.

The only big ones looking super bubbly are TSLA and perhaps AMZN and NFLX.
Score: 5 Votes (Like | Disagree)