Apple Inc (AAPL) Stock Expected To Soar With Higher In 2015; $160 Price Target Rests On Apple Watch, iPhone Performance
Apple Inc is expected to reach $1 trillion as Cantor Fitzgerald analysts predicted that the company will be almost three times more valuable than Google. Apple stock is currently trading at around $127 per share.
Analysts at Cantor Fitzgerald believe Apple stock would reach their target price of $180, giving Apple a valuation of over $1.05 trillion. According to Forbes, it would be the first time a company has been valued at more than $1 trillion.
Cantor Fitzgerald analyst Brian White said his new price target of $180 is based on his estimates that Apple’s valuation or market capitalisation will reach $1 trillion. White believes the Apple Watch will bring new opportunities for Apple. He added that the firm noted the strong performance of the iPhone in China.
White said Apple continues to show its commitment to its shareholders with stock buybacks. Cantor Fitzgerald expects Apple to return more cash to shareholders in April. White maintains his “Buy” rating for Apple stock. White has previously predicted that Apple may see sales of 25 million units of Apple Watches in 2016.
Meanwhile, Morgan Stanley analysts believe Apple stock deserves a higher multiple because of the company’s television service in the future. The Wall Street Journal reports that Apple is planning to release a TV service with 25 channels later on in 2015. Morgan Stanley believes Apple should be seen as a “platform” company with a stock worthy of a higher multiple.
The firm speculated that if only 8 percent of Apple users in the United States would sign up for the TV service, the company would possibly end up with 15 million subscribers. Morgan Stanley reiterated its Apple stock price target of $160 and “overweight” rating.
Amid reports of Apple planning a major and software upgrade later in the year, the company has added more channels to its current version of Apple TV. Tastemade, TED and Young Hollywood channels were added to channel lineup, Apple Insider reports. Apple has been rumoured to be working on a full subscription TV service expected in the fall.
To report problems or leave feedback on this article, contact: r.su@ibtimes.com.au