Analyst predicts 27% surge in Apple stock despite record valuation

iPhone event
iPhone event (Image credit: Apple)

What you need to know

  • Dan Ives is back with another big prediction for Apple.
  • He says Apple could grow by another 27%.
  • He also says Apple's services business is worth more than $700 billion.

Analyst Dan Ives of Wedbush is back with another bullish prediction for where Apple's stock is headed.

As reported by Markets Insider:

Even after Apple this week became the first US-listed company to hit a $2 trillion market value, it could still surge higher in the coming months, according to Daniel Ives of Wedbush.

In a note Friday, Ives reportedly said that Apple still has "a lot of gasoline left in the tank," especially given a nearing iPhone 12 supercycle. Ives gave Apple's stock an "outperform" rating, and a target valuation fo $515, with a best case scenario of $600, a valuation that woudl mark a 27% increase on the current price.

Ives says that Apple has a "once in a decade" opportunity, given that roughly 350 million iPhone users are in an upgrade window. Ives believes China will be a key market in this area, estimating that 20% of iPhone upgrades in the coming year will come from China.

Ives also had high praise for Apple's services:

Baked into Ives' bull thesis is Apple's services business, which he values between $700 billion to $750 billion and thinks will generate more than $60 billion annual revenue in 2021. Ives also sees growth in wearables booming, and estimates AirPods unit sales of 90 million in 2020 versus 65 million in 2019.

Ives believes the iPhone 12 will be one of the most significant product cycles ever for Apple, and that many people on "the Street" are underestimating demand.

Apple became the first U.S. comapny to hit a $2 trillion market capitalization earlier this week.

Stephen Warwick
News Editor

Stephen Warwick has written about Apple for five years at iMore and previously elsewhere. He covers all of iMore's latest breaking news regarding all of Apple's products and services, both hardware and software. Stephen has interviewed industry experts in a range of fields including finance, litigation, security, and more. He also specializes in curating and reviewing audio hardware and has experience beyond journalism in sound engineering, production, and design.

Before becoming a writer Stephen studied Ancient History at University and also worked at Apple for more than two years. Stephen is also a host on the iMore show, a weekly podcast recorded live that discusses the latest in breaking Apple news, as well as featuring fun trivia about all things Apple. Follow him on Twitter @stephenwarwick9