Skip to main content

Market Overview

Why Apple Will Hit A $3 Trillion Market Cap By The End Of 2021

Why Apple Will Hit A $3 Trillion Market Cap By The End Of 2021

Apple Inc (NASDAQ: AAPL) shares are on track to hit another milestone in terms of market capitalization, according to Wedbush Securities.

The Apple Analyst: Daniel Ives has an Outperform rating and $175 price target on Apple shares, with the bull-case price target at $225.

The Apple Thesis: After Apple's jaw-dropping performance in the December quarter that was reported in late January, the shares of the company have taken a breather, Ives said. The weakness, the analyst said, is a short-term blip on the stock's upward trajectory.

The positive view is premised on Wedbush's Asia supply chain checks, which point to robust strength in the 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," Ives wrote in the note.

Related Link: 10 Things Apple Investors May Wish For In 2021

Based on the current trajectory and in a bull-case scenario, Apple has the potential to sell more than 240 million units of iPhones in the fiscal year 2021, the analyst estimates. This is higher than the current consensus forecast of 220 million units and will likely easily eclipse the previous annual record of 230 million units set by the company in the fiscal year 2015.

With about 350 million of the 950 million iPhones worldwide currently in the window of an upgrade cycle, Ives thinks this will translate to an unprecedented upgrade cycle for Apple.

ASPs are also shifting higher due to product mix shifting toward the more expensive iPhone Pro, boding well for top-line numbers, heading into the March and June quarters.

Apple's EV endeavor, according to the firm, 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.

AAPL Price Target: Apple shares were retreating 2.4% to $126.64 Monday, after having lost about 2% year-to-date.

(Photo by Angus Gray on Unsplash)

Latest Ratings for AAPL

Feb 2021RBC CapitalAssumesOutperform
Jan 2021DA DavidsonMaintainsBuy
Jan 2021Deutsche BankMaintainsBuy

View More Analyst Ratings for AAPL
View the Latest Analyst Ratings


Related Articles (AAPL)

View Comments and Join the Discussion!

Posted-In: Daniel IvesAnalyst Color Long Ideas Reiteration Top Stories Analyst Ratings Tech Trading Ideas Best of Benzinga

Latest Ratings

FSRMorgan StanleyMaintains40.0
MEDDA DavidsonMaintains302.0
VICRBWS FinancialMaintains120.0
View the Latest Analytics Ratings
Don't Miss Any Updates!
News Directly in Your Inbox
Subscribe to:
Benzinga Premarket Activity
Get pre-market outlook, mid-day update and after-market roundup emails in your inbox.
Market in 5 Minutes
Everything you need to know about the market - quick & easy.
Fintech Focus
A daily collection of all things fintech, interesting developments and market updates.
Everything you need to know about the latest SPAC news.
Thank You

Thank you for subscribing! If you have any questions feel free to call us at 1-877-440-ZING or email us at