Apple shares are again hovering near an all-time high after nearly tripling over the past five years, but Wedbush analyst Daniel Ives recently claimed the stock still has a “lot of gas left in the tank” and hiked his price target on the stock from $375 to $425.
Furthermore, Ives believes Apple’s stock could eventually hit $500 a share in a “bull case” scenario, buoyed by rebounding sales in China, pent-up demand for the iPhone 12 amid 5G upgrades, and the COVID-19 crisis bolstering its services segment.
Ives also claims the tech giant, which has a market cap of $1.6 trillion, could become the first $2 trillion company by 2021.
Apple didn’t provide any guidance last quarter due to the ongoing impact of the COVID-19 pandemic. However, analysts expect its earnings to rise 4% this year and 20% the next.
At $500 a share, Apple’s stock would trade at 40 times this year’s earnings and 34 times next year’s earnings.
MacDailyNews Take: From Dan’s lips to Mr. Market’s ears!