Wedbush Predicts Apple Stock Will Hit $2 Trillion Market Cap
Wedbush recently stated that Apple stock is poised to surge, according to Markets Insider.
On Wednesday, the firm upgraded the price target to $425 from $375. The firm believes a recovery in demand and incoming 5G products will propel the company to these gains. "We believe during 2021 Apple has strong potential to be the first $2 trillion valuation given the 5G tailwinds and services momentum potential over the coming years," said Wedbush analyst Daniel Ives. Apple's market cap is around $1.5 trillion.
Wedbush maintained its outperform rating on Apple, and upgrade its bull case to a $500 price target. Shares of Apple were flat on Thursday but were showing signs of life 30 minutes before the closing bell. Data shows a "continued demand snapback" in China, which may lead to a "massive pent up iPhone 12 cycle heading into the Fall in this key region as well as globally," said the note.
China is a key region for Apple. Wedbush estimates that 20 percent of iPhone upgrades will come from the region. Furthermore, "the supply chain getting back to normalization ahead of expectations has been impressive and now ultimately puts Cook & Co. back in the drivers seat to launch this 5G cycle in its typical mid-late September timeframe," said Ives.
Lastly, Wedbush estimates that 350 million out of Apple's 950 million iPhones worldwide are due for an upgrade that could propel the "longer-term bullish thesis and 5G super cycle for Cupertino over the next 12 to 18 months."
Apple shares are up around 20 percent year-to-date.