Three reasons Apple will be the world’s first trillion-dollar company

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apple_stock_final
This just keeps getting higher and higher. Photo: Rob LeFebvre/Cult of Mac
Photo: Rob LeFebvre/Cult of Mac

Cupertino claimed the title of world’s most valuable company earlier this year, but according to some bullish Wall Street analysts, Apple could soon become the world’s first trillion-dollar company.

In a note to investors today, Cantor Fitzgerald analyst Brian White increased his target price for Apple shares to $180, putting his estimations well above other analysts’ expectations. Apple shares’ value will increase 40 percent over the next 12 months, according to White’s report.

While Apple naysayers have pointed to slumping iPad sales and the unclear future of the Apple Watch as signs that Apple is weakening, White gives three key reasons why Apple is poised to break the trillion-dollar barrier.

Carl Icahn says Apple shares should be worth nearly double

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apple_stock_final
This just keeps getting higher and higher. Photo: Rob LeFebvre/Cult of Mac
Photo: Rob LeFebvre/Cult of Mac

Shares of Apple stock closed at an all-time high today of $124.88, bringing the company’s marketcap to a staggering 711.59 billion. Tim Cook couldn’t be happier with his company’s performance, but according to famous billionaire investor Carl Icahn, Apple’s stock should really be worth double.

In a letter posted to his Twitter followers, Carl Icahn said his firm has increased AAPL’s forecasted earnings per share in 2015 and believe the market should value Apple at $216. That’s not a price target. That’s what Ichan thinks they should be worth today.

According to Carl, the rest of the market still hasn’t caught on because they’re giving the company a significantly discounted multiple on its P/E ratio compared to the S&P 500.