The $1 trillion market valuation target for Apple will happen in the nearest future, analysts concurred. The record-breaking iPhone sales, the consistently impressive earnings forecast, the impending largest buyback and capital return program, the upcoming Apple Watch in April and the rumored driverless Apple Car are all pulling Apple’s share price up. To date, the company’s shares are up 19 percent compared to 2014. It now has more than $110 billion-worth of market valuation.
Analysts are one in saying Apple’s sales will escalate to as much as $237 billion for 2016. Apple’s shares will hit $9.26 per share in 2015.
$1 Trillion Target
Apple’s valuation will reach $1 trillion in the next couple of years, according to James Gautrey, portfolio manager for Schroders. He said the $1 trillion mark is achievable as many investors are willing to pay in the midst of Apple’s expansion.
The company’s products has always been seen as consumer technology, he said. “Boom-and-bust cycle type of company, like the Motorolas, Nintendos, Nokias. Right now, the innovation Apple is coming out with – payments, healthcare, Beats – those three parts for the consumer are really starting to lock people in,” Gautrey told the Financial Times.
Deborah Koch, portfolio manager of Northern Trust’s technology fund, echoed the same opinion about Apple. Koch noted that Apple had pioneered significant innovations in the industry. She said the iOS platform spearheaded the shift to mobile computing the same way Microsoft Windows and Oracle changed the landscape in client server applications in the 90’s.
Andrew Slimmon, analysts at Morgan Stanley Wealth Management, said that the ultimate driver of Apple stock is the company’s ability to supersede expectations. “If you run a diversified portfolio and you don’t own Apple, you are taking a very big bet against it. That forces a professional investor into the stock,” he told the Financial Times.
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Apple Price Target at $165
Trip Chowdhry of Global Equities Research maintained his Buy rating on Apple stock with a price target of $165 on Feb 23. He believed that 100,000 orders of the Apple Watch will roll out in April. The product, he believes, will propel Apple stock to great heights.
Chowdhry recently attended various invite-only Apple events and had this to say about the highly anticipated smartwatch: “Every aspect of Apple Watch is extremely well thought-off and seamlessly integrated – right from Software development tools, to AppStore, to the Design… Google Android Wear seems quite disconnected and haphazard in implementation.”
Brian White, Cantor Fitzgerald analyst, also maintained a Buy rating on the stock and a $160 price target. His rating was influenced by the rumored Apple Car, set to launch in 2020. “We believe the personal robot category offers great potential over the next decade and fits well with Apple’s skill set,” White was quoted by Value Walk.