Setting his price target for AAPL at $310 per share, which is 40% above where the company’s shares are currently trading, Wedbush analyst Daniel Ives has said in a note sent out to clients that Apple’s valuation can approach the $1.5 trillion level over the coming year, Business Insider is reporting.
“Apple’s valuation can approach the $1.5 trillion level based on our analysis of the monetization potential of its unparalleled consumer installed base over the coming years coupled by further multiple expansion around the services business,” Ives said.
“We estimate between 60 million and 70 million Chinese iPhones will be in the ‘upgrade window’ over the coming year with iPhone’s next generation trifecta of smartphones as a major potential product catalyst in the all-important Chinese market, which could see a renaissance of growth on the horizon for Apple.”
The analyst noted that Apple’s decision to release three new iPhone models while discontinuing all other older versions this year suggests the company is determined to “catalyze fence-sitting iPhone customers onto their next smartphone” and capture the upgrades among customers that have decided to bypass previous models.
Ives, however, cautioned that investors need to keep a very close eye on a possible supply-chain disruption in the coming months amid President Donald Trump’s latest round of tariffs.
Apple also noted while announcing its Q2 results that there were some signs of slowing growth in its key device businesses. The company is set to report its third-quarter earnings on November 1.