Bullish analyst thinks Apple stock is going nowhere but up

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AAPL
Apple could be in for a major surge over the next year.
Photo: Buster Hein/Cult of Mac

When Apple passed the $1 trillion valuation earlier this year, you could be forgiven for thinking you’ve missed your chance to invest. Not so, claims tech Dan Ives of Wedbush Securities. According to the bullish Apple pundit, the company could see a massive 40 percent surge this year.

AAPL currently trades at $219. According to Ives, however, by this time next year you should be expecting it to trade at $310. Here’s why.

Ives, previously with the firm GBH Insights, thinks that not only do the new iPhones have particularly healthy margins, but Apple will also sell more than many people expect.

“With positively trending average selling prices that we believe can approach about $800 in fiscal 2019 and healthy gross margins heading into this 2019 product cycle that are showing no signs of abating,” Ives wrote.

Particularly, he thinks that current predictions of 220 million iPhone shipments in the next 12-to-18 months are “conservative.” His best guess? Around 350 million units. He thinks the new handsets have the potential to grab strong uptake among the upgraders who skipped out on the iPhone 8, iPhone 8 Plus, and iPhone X generation of phones in 2017.

Of course, it’s worth noting that Ives is at the most optimistic end of the spectrum when it comes to analysts. His $310 price target puts him ahead of previous record holder Brian White at Monness Crespi Hardt, who forecasts a $300 target price for Apple. The average on Wall Street is considerably lower at “just” $239.

Do you consider AAPL to be a good investment right now? What are the potential upsides and downsides of investing in the stock right now? Give us your appraisal in the comments below.

Source: CNBC