Analysts at Cantor Fitzgerald on Monday said they thought Apple’s shares – which are currently trading at about $127, valuing the company at $733bn – could soon be worth $180 each, which would value the iPhone maker at $1.05tn.
It is the first time any company has ever been valued at more than $1tn, and would make Apple more valuable than the gross domestic product (GDP) of Indonesia, the Netherlands or Saudi Arabia, according to World Bank statistics. It would also mean Apple would be worth 2.6 times as much as Google, the second most valuable company in the US, with a market valuation of $383bn.
Cantor Fitzgerald analyst Brian White said he thought Apple was worth that much because of its continued strong performance in China, where sales are increasing by 70% year-on-year, and the introduction of the Apple Watch, its first new type of product in five years.
“Next month, Apple will enter its first new product category in five years, while media reports over the past several weeks have highlighted potential new areas of future innovation,” White said in his note to clients. “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.”
Cantor Fitzgerald was already one of the most bullish analysts on Apple’s stock value potential. White’s previous price target was $160 a share. Morgan Stanley analysts also reckon Apple shares could be worth $160 in a year, but Berenberg Bank, the most bearish, predicts Apple’s shares might crash to $85. The average analyst share price forecast is $135, according to Forbes.
White said he thought Apple may sell 25m Apple Watches in the 2016 financial year, making revenue of about $11.7bn.
White also predicted that Apple’s much-talked-about electronic car project could be a more than $500m opportunity.
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