Apple should be worth $1 trillion, Wall Street analyst claims

By

money
One of the world's most undervalued stocks, apparently.
Photo: Ste Smith/Cult of Mac

Calling Apple one of “the most under-appreciated stocks in the world,” a Wall Street analyst says the company should be worth $1 trillion within the year.

Drexel Hamilton analyst Brian White gave AAPL a price target of $202, an increase of roughly 35 percent — and by far the highest Apple valuation on the books.

As you might expect, White also gave Apple a “buy” rating to accompany his $1.06 trillion valuation. This represents the highest price target of the 33 Wall Street analysts who cover Apple, which otherwise give an average valuation of $159 per share. The lowest Apple price target is $120.

At present, AAPL trades at $151.20, having closed last week at $148.96 per share. In 2017 alone, Apple shares have risen 29 percent, while the company climbed a massive 60 percent over the past year.

Last week, Apple announced its quarterly earnings for Q2 2017, which barely beat Wall Street predictions. The mixed earnings report showed strong demand for Apple Watch and AirPods, along with a moneymaking ecosystem and a consistently growing services division. On the downside, iPhone growth has slumped, while Apple is also fending off problems in China.

This isn’t enough to scare off investors, though. In a recent interview, Berkshire Hathaway CEO Warren Buffett sang Apple’s praises. He said he loves what the company is doing with its buyback program for investors — and isn’t the slightest bit worried about current iPhone sales.

Source: CNBC