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.
The reasons? China, cash and new products.
Apple Watch is set to hit stores next month and Apple could sell as many as 20.6 million watches in the first year, says White. Even if the Apple Watch Edition doesn’t sell in the millions, Apple stands to pick up a nice payday from its first timepieces.
One country where the super-expensive gold Apple Watch is expected to do especially well is China. Apple is “better positioned than ever in China,” notes White. Thanks to increasing 4G service coverage, China Mobile is poised to become Apple’s most profitable carrier partner.
Apple is also expected to return more cash to its shareholders. Tim Cook alluded to an announcement regarding the company’s buyback program that could be made during Apple’s earnings call in April. Despite White’s higher-than-average projection, he still trails diehard AAPL lover Carl Icahn, who’s been gobbling up shares by the millions while claiming Apple stock is really worth double its current price.