Apple stock price soared sharply in the past couple of weeks as market pundits have presented a bullish outlook of the largest tech company. The recent stock split along with price target hikes helped in accelerating the upside momentum.
Shares of the largest tech company grew 70% year to date, extending twelve months gains to 143%.
Bloomberg’s report about Apple’s 5G smartphones has added to investor’s sentiments. The report suggests that Apple is in a position to produce at least 75M 5G iPhone units this year despite pandemic pressure.
The report indicates Apple is likely to introduce 4 new iPhone models in the fall launch. The company also expects to launch an iPad Air with an edge-to-edge screen, brand new over-ear headphones without the Beats branding, two new Apple Watch models, and a smaller HomePod speaker.
JPMorgan has provided a price target of $150 for Apple stock, with an overweight rating. Apple is currently trading around $134. Apple’s market valuation reached $2.20 trillion level. It is the first US-listed company to reach that level in the recorded history.
“That AAPL shares crossed [a $2 trillion market cap] in a year with significant COVID-19 disruption testifies to the recurring nature of not only its Services but also its Products, such that investors are now willing to pay a Services-like premium on the entire earnings stream and a modest premium on account of expectations for further revenue/earnings upside,” Samik Chatterjee said.
Several other firms have lifted their price targets following the stock split. For instance, Wedbush has provided a price target of $150 while Canaccord Genuity has set a $145 price target.
Canaccord Genuity analyst T. Michael Walkley says Apple has been beating its competitors across all hardware categories. Wedbush analyst Daniel Ives also sees strong future fundamentals for the tech giant.