Currently, the Cupertino-based iPhone maker has a market cap of around $798 billion but according to some analysts, the Silicon Valley giant has the potential to surpass the $1 trillion mark very soon. The analysts – some of them whose names we are going to mention below – have said that the tech giant could become the first company to reach the $1 trillion mark within a year or 18 months.
Apple can become a $1 trillion company within 12 to 18 months: Report
A report released by RBC Capital Markets analyst Amit Daryanani says that the Cupertino-based iPhone making company could reach the $1 trillion threshold within the next 12 to 18 months if the tech giant can continue to increase revenue, sustain share buybacks and expand both operating and gross margins.
Daryanani writes in his report, “We believe AAPL’s current stock price creates an attractive entry point for investors to benefit from its ability to return to revenue and EPS growth in FY17.” In addition to this, the RBC Capital Markets raised its price target for the Silicon Valley based tech company as well, from $157 to $168 per share, based on their positive belief that the stock of the tech giant can reach $12+ earnings per share in 2019.
According to RBC, reaching that price would push the stock of the tech company into the $192-195 per share range, which would push its market cap to over $1 trillion. The unique advantages of the Cupertino based iPhone maker over its competitors should assist the tech giant in continuing to lead the market, said the report.
Apple in need of a ‘narrative shift’ to increase its stock price
The report of the RBC Capital Markets said, “We believe AAPL’s true differentiation is its unique computing ecosystem: iOS.” The report added, “iOS provides users with an integrated, scalable, and seamless experience across multiple devices, which we believe will be difficult for competitors to replicate in scale.”
Some other analysts, however, believe that the iPhone making giant is in need of a “narrative shift” to significantly boost the price of its stock. A recent UBS report asked, “Is Apple a hardware company subject to rapid commoditization or a sticky consumer-brand capable of driving sustainable growth at a high margin?” Already, there are some good signs in the customer loyalty metrics of the tech giant, especially when it comes to the sales of upcoming flagship smartphone of the tech company – iPhone 8.
The UBS report adds “Further price upside is more likely to come from earnings upside than continued multiple expansion.” The company, notes news site Business Insider, is also preparing to release around three new laptops at its annual Worldwide Developers Conference in June.