Here’s how Apple gets to $1 trillion valuation in just 12 months

“With Apple’s stock price creeping toward $130 a share, the company’s value is hovering around $750 billion,” Jennifer Van Grove reports for TheStreet “Now, analyst firm Cantor Fitzgerald is projecting Apple can cross the $1 trillion-threshold in just 12 months.”

“Monday, Cantor Fitzgerald upped its 12-month price target for Apple to $180 per share, from $160, based on confidence in the company’s forthcoming Apple Watch, continued success of the iPhone in China, and other yet-to-be announced new businesses,” Van Grove reports. “The new target implies a market capitalization of $1.07 trillion based on Apple’s 5.8 billion outstanding shares.”

Van Grove reports, “‘Apple will enter its first new product category in five years,’ Cantor Fitzgerald analyst Brian White wrote in the research note. ‘Also, we believe Apple’s iPhone portfolio and position in China have never been stronger. Finally, Apple has shown its commitment to returning cash to shareholders, and we expect more in April. We believe the combination of these forces will drive the market to reward Apple’s stock.'”

Read more in the full article here.

MacDailyNews Take: $1 trillion is just a mile marker on the way to the next trillion and beyond.

[Thanks to MacDailyNews Reader “David E.” for the heads up.]

16 Comments

  1. I like our plan, I Ike it a lot ….

    Actually what I like about Apple and their future growth is their focus on the product catagory …..

    Trillion coming soon!

  2. Apple is already a “$1 trillion” company. The stock just needs to catch up to reality. About $30 of each share (probably more by now) is pure CASH, so at the current price for AAPL, Apple’s ongoing business is being valued at less than $100 a share.

    If Apple is divided into five separate companies

    Mobile – iPhone and iPad
    Computers – Mac
    Retail – Physical and online Apple Stores
    Digital Media and Services – iTunes Store, apps, iBooks, Apple Pay…
    Other – iPod, Apple TV, (soon) Apple Watch, Beats, accessories…

    the combined value of those companies (plus the cash) would easily exceed $1 trillion. The main thing keeping AAPL down is Apple’s total valuation. It takes a increasingly large amount of new investment to move AAPL up to the next milestone.

  3. Why is Apple’s P/E no better than Microsoft’s P/E despite Apple leading Microsoft in nearly every metric there is? I don’t understand investors’ continued lack of confidence in Apple’s growth.

    Apple came off a strong quarter and Microsoft came off a weak quarter and yet Microsoft still gets a higher premium. I have my doubts about Wall Street cutting Apple any slack to make it to that $1T mark in twelve months. I’ve heard that Apple’s multiple might improve if Apple gets into the streaming content business but we’ll just have to wait and see about that. Improved AppleTV hardware with plenty of services seems very promising for Apple’s growth.

  4. Ha, did Brian White switch firms again? He used to be at UBS where he had that $888 price target, pre-split, and then upped it to $1111. People laughed at him because his price targets seemed a bit too convenient. Of course, Apple would be $890, pre-split today, so hats off to you Brian White, and I hope your $180 price target in 12 months comes true, because I’ll be very happy.

  5. The first place I ever read a forecast of Apple reaching $1000 per (old) share was an article in Seeking Alpha about 10 years ago, as I recall. I do not know who wrote it. Hard to believe it is about to happen. It was certainly titillating to think about. And I guess I agreed, since I’ve been long Apple since 2003 and adding to my position. This is the type of insightful analyst you want to get advice from. Anyone can project an increased price target when the market is about to hit it, anyway. Go Apple !

  6. Dont discount Revamped Apple tv! Gaming, subscription tv, new interface ! Chord cutting galore !
    ApplePay
    Ipad Pro… And pro stylus .
    New ipads with force touch !
    new iphons 6f ( f for force touch )
    And if those rummors of apple car persist and gain even more traction!???
    Trillion here we come !!!!!!!!!

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