Apple Inc (AAPL) Stock To Soar As Analysts Remain Bullish On The Watch; $1 Trillion Valuation Predicted

Apple Inc (AAPL) stock is predicted to reach the price target of $185 per share. Investment bank FBR has rated Apple stock and declared that the iPhone maker will soon become the world’s first corporation to be valued at $1 trillion.

FBR analyst Daniel Ives believes Apple’s closed software ecosystem is the company’s strength as mobile hardware becomes “increasingly commoditised.” He said a closed system helps drive customers choose Apple devices and software, reports Apple Insider.

Ives said FBR’s optimistic forecast is based on Apple’s increasing mobile sales in China, great emphasis on services and the potential of new product categories like the Apple Watch. FBR has estimated that profit margins for Apple services are over 90 percent. The investment firm said Apple’s margins could make up 32 percent of total profits.

FBR sees growth in the company’s services like Apple Pay, streaming TV and the App Store. One business trend FBR believes will boost iPhone and iPad sales is people bringing their own devices to work. Enterprise sales are expected to climb with the growing number of productivity apps.

Several analysts have remained bullish on Apple stock. Trip Chowdhry, analyst at Global Equities Research, has estimated Apple Watch pre-orders on the weekend launch at 2.5 million units. He increased his price target for Apple stock to $176 from $165, reports Forbes.

Andrew Uerkwitz, analyst at Oppenheimer, said Apple Watch will expand on the “intimacy of hardware” since it’s the missing link to connect applications to consumers. Uerkwitz, who rated Apple stock as Outperform, believes Apple Watch will “revolutionise the way we interact with objects around us.” He said it will act as a digital concierge or the primary interface between the users and hardware devices.

“Whereas the smartphone will remain the centre for computing, the Watch will emerge as the primary interface with connected devices,” said the analyst in a note to investors. Uerkwitz added that the firm remains bullish on Apple’s long-term prospects.

Wamsi Mohan, analyst at Bank of America Merrill Lynch, has also remained bullish on Apple stock. He said the bank rates Apple as a “Buy” due to its strong iPhone product cycle, new revenue sources such as Apple Pay and Apple Watch and the company’s significant cash balance.

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