With the iPhone 8 release looming on the horizon, shares of Apple have been raising steadily over the past few months now. While May saw Apple’s stock price fall 9% from its all-time high of $156.10, Wall Street analyst Brain White still believes their represents “yet another buying opportunity” with analysts and investors turning their attention to be unannounced, but widely leaked iPhone 8’s release frame.
Although Apple’s currently trading in the $145/share range, though some are anticipating that it’s only a matter of time before Apple shares soar to even greater heights. In fact, one of the analyst believes that Apple could eventually reach the target to well become the world’s first trillion-dollar company in the span of just a year (12-months).
Expected to debut in September, the new phone model could see big sales numbers for Apple.
According to the latest report (via MacRumors), Apple is one of “the most underappreciated stocks in the world” echoing a sentiment that many investors have championed for quite some time. As White believes Apple is still an under-appreciated stock, and that the iPhone 8 could represent a good investment opportunity.
In our view, Apple’s quarterly results will be less important this summer as investors are focused on the iPhone 8 this fall, along with the company’s raised capital distribution initiative, depressed valuation and new innovations as showcased at WWDC. We still believe Apple remains among the most underappreciated stocks in the world.
As a quick point of interest, Apple’s current P/E ratio is about 16:9. In contrast, the P/E ratios for companies like Google, Microsoft and Amazon currently check in at 31, 30 and 183, respectively. Most interesting is where White sees Apple’s stocks going in the future. Looking ahead, White believes that Apple shares could very well rise past the $200/share threshold, could reach his $202 price target over the next twelve months. In turn, this would bestow Apple will a trillion-dollar market cap.
While shares of Apple may very well rise in the weeks and months ahead, reaching a trillion-dollar market capacity may prove challenging given Apple’s ongoing share repurchasing program. Apple’s current market capitalization is approximately $737 billion,, which is not to be sniffed at.
Similar to the bottoming process in Apple during the summer of 2013 that drove a strong rally into the spring of 2015, we believe the bottom in the stock during May 2016 and the upcoming iPhone cycle is setting up Apple to reach our $202 price target over the next 12 months.
If that were to be happen it would mean Apple would be valued as over a trillion-dollar company based on the market capitalization. As it stands now, Apple has approximately 5.4 billion shares outstanding, meaning that it can reach a trillion-dollar market cap once its stock price grows and hit $185.
All of this sounds great for investors, Apple still has some better ways to go implement before this potential future can come to fruition – AAPL closed at $142.73 on Thursday.
It’s believed that the iPhone 8 may usher in the largest refresh cycle Apple has ever seen. Not only is the current pool of iPhone users bigger today than it’s ever been before in history. The iPhone 8 may represent the largest technological leap forward the iPhone has seen in quite a few years. In addition to edgeless OLED display, iPhone 8 will reportedly include an advanced new camera, speedier internals with more RAM, improved battery life, wireless charging functionality, improved water resistance and much, much, more.
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