The Wedbush analyst predicts a massive 86% growth in Apple stock price in case of a bull case scenario backed by a robust supply chain thereby clocking higher sales numbers.
Over the last month, Apple Inc (NASDAQ: AAPL) stock has been moving sideways and is down over 10%. However, Wedbush Analyst Daniel Ives has given an outperforming rating for AAPL stock. As per Ives, Apple stock can touch a price of $175 with its bull base prediction going all the way to $225. “The recent sell-off creates a golden buying opportunity,” notes Ives. This is a whopping 86% surge from the current levels that suggest that Apple will easily smash past the $3.5 trillion market cap.
It is to note that the AAPL stock is moving sideways despite announcing solid quarterly results for Q4 2020. Besides, the company is also expecting a boosted revenue growth for the first quarter of this year.
The Cupertino-based tech giant registered strong growth last year making the most of the market opportunity during the COVID-19 pandemic. Also, the recent outperform outlook from the Wedbush analyst comes after taking a look at Apple’s improving supply chain. Thus, it is predicting a robust sales cycle ahead for iPhone 12 for the rest of 2021. In the note to investors, Ives writes:
“Given the fundamental strength we are seeing for this supercycle, coupled by a further re-rating on the horizon, we believe Apple will hit $3 trillion in market cap by year-end”.
Bull Case Scenario for Apple Market Cap and iPhone Sales Expectations
In a bull case scenario, Apple is like to sell 240 million units of iPhone this fiscal year of 2021. However, looking at the current trajectory, Apple can easily touch 220 million iPhone sales. Moreover, the expectation of the iPhone 13 launch also can push teh stock higher.
On the other hand, out of 950 million active iPhone units worldwide, nearly 350 million units are ready for an upgrade. Ives bets that this will further translate into an unprecedented upgrade cycle for Apple. Also, Apple’s sales margin could be moving higher considering the sales of more expensive iPhone Pro models. These models are likely to add more fuel to Apple’s top-line numbers going into March and June quarters.
Wedbush also states that Apple’s ambitions with the electric vehicle project, is just a move at the right time. “Given the fundamental strength we are seeing for this supercycle, coupled by a further re-rating on the horizon, we believe Apple will hit $3 trillion in market cap by year-end”.
On Wednesday closing, AAPL stock was trading 0.91% down at a price of $199 with a market cap of $2.1 trillion.
Bhushan is a FinTech enthusiast and holds a good flair in understanding financial markets. His interest in economics and finance draw his attention towards the new emerging Blockchain Technology and Cryptocurrency markets. He is continuously in a learning process and keeps himself motivated by sharing his acquired knowledge. In free time he reads thriller fictions novels and sometimes explore his culinary skills.