Holding one of the bullish views these days on Wall Street, veteran Apple analyst and Loup Ventures managing partner Gene Munster has predicted that Apple stock (AAPL) will surge more than 70% in the next 24 months. Speaking to CNBC News, Munster predicted Apple’s Q2 earnings per share and revenue to be slightly above Street estimates.
“There’s meaningful upside to the Apple story. I suspect that this year, Apple will be the best-performing FAANG stock,” the Loup Ventures managing partner said Friday. “I think this can be closer to $350 [a share]. … I know historically it has not gotten the multiple. But I think that will slowly change.”
Analysts are expecting Apple to earn $2.37 a share on $57.6 billion in revenue during its fiscal second quarter. “The real hurdle, if you were going to boil this whole earnings call down to one number, it’s simply the services growth,” Munster said.
Since the December low, Apple has outperformed the S&P 500 by 14%, with its stock going up 39% since then. However, the company has already warned its investors that the iPhone sales would likely be below Wall Street expectations for this quarter. Moreover, the company has been overtaken by Microsoft as the world’s most valuable company.
Nonetheless, Munster believes there’s enough in the pipeline to push Apple shares higher. “Longer term, there are obviously opportunities on services for products that they can have, whether it’s this gaming, this arcade service, or this video streaming service”.