Wedbush: Apple’s market cap will hit $3 trillion in 2021

Analyst Daniel Ives sees more good news for Apple on the horizon.

From a note to clients that landed on my desktop Sunday:

iPhone 12 strength not slowing down; more good news on the horizon. Apple’s stock has taken a breather since its jaw dropping performance in the December quarter came and passed for the Street in late January. That said, we view this as a short term blip in the stock’s upward trajectory as our Asia supply chain checks continue to show robust strength in this iPhone 12 supercycle into the rest of 2021. Given the fundamental strength we are seeing for this supercycle, coupled by a further re-rating on the horizon, we believe Apple will hit $3 trillion in market cap by year-end.

Maintains Outperform rating and Street-high $175 price target. 

My take: Music to the bulls’ ears. Ives’ specialty.

10 Comments

  1. Robert Paul Leitao said:
    A $3 trillion dollar market cap would put the share price at about $179 or about a 38% rise from Friday’s closing price. I’m looking forward to seeing this unfold.

    6
    February 21, 2021
    • Mark Visnic said:
      There is a higher probability of a scenario equating to Katy Huberty’s “bull case” — ie over $200/share — than ever before playing out as AAPL/Apple: (1) continues on its rerating trajectory; 2. accumulates shares with a 120 handle instead of a 150 handle, which is where it should be in this market, based on its business momentum revealed in FY Q1; and, 3. it becomes clearer that product refreshes and the capital allocation program will drive forward 12 month EPS well above $5.10.

      Analysts are grossly too cautious in forecasting unit sales growth of the 12 and the concomitant service rev growth. I don’t buy that Apple is a stay at home name. It is one of the few that straddles as a stay at home and reopening/GDP explosion play. There is a better than 50% probability Danny Ives’ price target will be $20-$30 underwater by February 2022, in my view. 40 x $5.15 =

      Where is Brian White when you need him? : )

      4
      February 21, 2021
    • Rick Povich said:
      I’d bet when/if it hits that target, it’ll last for a day before profit-taking ensues. The price drops 5% and stays there for a month or so. In other words, the typical AAPL price behavior. ‍♂️ Look at what’s happened since the blowout earnings report. I’m just a bit cynical of the market treatment, but I’ve been long AAPL for many years so I’ll sit back and believe in Dan and Katy!

      0
      February 22, 2021
  2. Ralph McDarmont said:
    Perfect music. I can dance a lot to a $3 trillion market cap and a share price of 170 or 200. Bring it on. I have felt a little beaten lately. A week ago I dumped some Apple and bought speculative crap. Hydrogen and weed. I undid my diversification mistake a few days later. AAPL has never disappointed me. I just got nervous. A buying opportunity, kinda. Staying long with Apple has always worked out.

    3
    February 21, 2021
    • Roger Schutte said:
      What you experienced was diworsification.

      1
      February 22, 2021
    • David Drinkwater said:
      If you bought the right weed, you got high. There has been a lot of movement in pot stocks in the last two weeks. Multiple top ten gainers by percentage on DJIA and NASDAQ.

      0
      February 22, 2021
  3. bas flik said:
    better focus on one stock you know all about and this should be the best stock in the market. makes life more easier.

    2
    February 22, 2021
  4. bas flik said:
    looks like apple will overtake samsung in 2021 to become nr1 smartphone seller.
    will be big achievement especially regarding price development.

    0
    February 22, 2021

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