CFDs are a leveraged product and can result in losses that exceed deposits. Please ensure you fully understand how CFDs work and what their risks are, and take care to manage your exposure. CFDs are a leveraged product and can result in losses that exceed deposits. Please ensure you fully understand how CFDs work and what their risks are, and take care to manage your exposure.

Apple on course to hit a $2 trillion valuation

The tech giant has seen its share price rebound after tumbling 25% the Covid-19 outbreak, with the stock on course to exceed analysts price targets for 2020 and on a path to be the first company to hit a $2 trillion valuation.

Two years ago, Apple became the first company to reach a $1 trillion market valuation. This week, several analysts have begun eyeing the next milestone, with the company on course to break above $2 trillion.

In a note to investors earlier this week, Evercore ISI analyst Amit Daryanani expressed his optimism for Apple stock and provided a blueprint for how the company could drive its share price higher and reach its next landmark valuation.

In terms of timeline, the Evercore analyst believes the stock can reach a $2 trillion market cap over the course of the next four years, implying a 13% - 17% annual appreciation in share price.

Daryanani’s outlook is based on the company’s core business growing year-on-year, with the analyst predicting that Apple could see its earnings per share (EPS) hitting $23 by September 2024 – almost double his EPS estimate of $12.72 for this year.

Apple opened at $323.34 per share on Wednesday.

Evercore lifts target price for Apple stock

Due to the investment bank’s upbeat outlook, Evercore reiterated its ‘outperform’ rating for the stock and lifted its target price for Apple from $345 to $360 per share, implying a potential upside of 11%.

‘Apple continues to offer the best risk/reward in large-cap tech and long-term investors should use any weakness to add to positions,’ Daryanani said in the note.

Apple is already closing in on analysts’ median price target of $323.79 per share, with the stock on course to break above that level this week.

Double-digit growth expected from Apple services and wearables

Evercore is particularly excited about the growth prospects of Apple’s services and wearables division, with the investment bank forecasting double-digit growth for both units.

Daryanani said that sales from the company’s wearable technology, such as its Apple Watch and AirPod Pro headphones, could generate revenues of over $60 billion in the years ahead, with its services division capable of generating $100 billion in sales over the period.

The analyst also had good news for shareholders, with him predicting that Apple will continue to buyback shares to reduce its share count by around 1 billion over the next four years, which would also help it in achieving its $2 trillion valuation.

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CFDs are a leveraged products. CFD trading may not be suitable for everyone and can result in losses that exceed your initial deposit, so please ensure that you fully understand the risks involved.

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