Apple is one of the three most valuable companies in the world. An analyst believes that investors could expect much more here in the long term.
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• Apple stock could reach 2 trillion market cap
• Analyst sees services in particular on the advance
• Price target raised
When the tech giant Apple broke the trillion-dollar mark in stock market value in 2018, it was a milestone in stock market history: Never before had a company been worth more on the financial market. In the meantime, the iPhone manufacturer has got competition: With the newcomer Saudi Aramco there was a changing of the guard at the top. And competitor Microsoft also wants to be at the top when it comes to market capitalization and is putting Apple closely on the stock market. Meanwhile, both US companies are fighting a permanent battle for the place behind the world’s largest oil company.
Apple worth $ 2 trillion in 4 years?
An analyst believes that Apple will soon win the race with Microsoft and could soon be worth $ 2 trillion. Evercore analyst Amit Daryanani published an analysis of a four-year plan for the company, which under the leadership of CEO Tim Cook had already reached record levels in market capitalization two years ago.
According to the expert, Apple expects to achieve a profit of $ 23 per share by 2024. That would be about twice the estimated EPS for 2020. According to his information, the technology giant will achieve this through strong growth in its core business. The expert specifically mentions the iCloud services, which he expects to grow to up to $ 100 billion. The business with Apple Wearables, i.e. the Apple Watch and the Airpods, is also expected to continue to grow significantly, according to Daryanani: Here he expects a target of $ 60 billion.
Share buybacks expected
In addition, the analyst has another argument as to why it is worth buying the Apple share and why the share certificate will continue to rise: He expects Apple to continue its aggressive share buyback strategy in the future. In his view, the number of shares in circulation will decrease by one billion in the next four years.
Price target raised
Against the backdrop of the expected positive business development, the Evercore analyst has raised its 12-month price target for the Apple share. With an existing outperformance rating, Daryanani expects to jump to $ 360; previously he had only expected the share certificate to increase to $ 345. This would give Apple shares around ten percent more room for improvement.
To make it to a market cap of $ 2 trillion, Apple’s stock would have to rise to over $ 550.
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