Apple Inc.’s stock could reach a market capitalization of $3 trillion, analysts have predicted, drawing attention to the development of the Electric Vehicle (EV), Apple Car, as well as high expectations for the next iPhone.
In 2018, the tech giant became the world’s first publicly-traded company to be worth $1 trillion and last year, it became the U.S’s first publicly-traded company to be valued at $2 trillion. Now, analysts at Citigroup Inc. and Wedbush see the potential for Apple to hit the $3 trillion milestones, an increase that implies an almost 50% surge from Thursday’s close. Currently, Apple is already the most valuable stock in the world with a market cap of about $2 trillion.
According to a note written by Citigroup Inc. analyst Jim Suva, on Friday, developing the Apple Car could boost the company’s sales by 10% to 15% after 2024 and by the year 2025, he expects the worldwide EV market to outgrow the combined market for PCs, smartphones, tablets, and wearables.
Apple’s EV endeavor, according to Wedbush, is the right strategic move at the right time.
“If Apple gets just 5%-10% of share this could represent another major growth pillar within Cupertino and add $30+ per share to Apple’s SOTP valuation,” the firm said, according to Yahoo Finance.
Daniel Ives, Wedbush analyst, whose price target for Apple is a Street-high $175, also sees a $3 trillion valuation by the year-end on the horizon. In a note on Wednesday, he called recent declines in the stock a “golden buying opportunity,” expecting the upcoming iPhone 13 to be a “game-changer,” with greater output rates than the previous generation being pointed out by supply chain data.
Since reaching a record high at the end of January, Apple’s shares have slid around 17%, amid a rotation out of high-flying tech stocks. In early trading on Friday, they declined 1.8% as worries over rising bond yields hit the tech sector more broadly.
