Apple stock could jump 62% to $ 225, analyst says

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Actions of Apple (NASDAQ: AAPL) have already climbed 79% in the past year, but will reach new all-time highs in 2021.

That’s according to Wedbush analyst Daniel Ives. Today, Ives raised his target for Apple stock price to $ 175 from $ 160, but also made a pitch as to why the stock could climb all the way to $ 225. Its new base target represents potential gains for investors of around 26% from the stock’s closing price of around $ 139 on Friday. However, it is his compelling argument for the bullish deal that should get investors more excited.

The iPhone 12. Image source: Apple.

Ives cited the potential for “attractive” iPhone sales, saying audits of Apple’s Asian supply chain showed strong demand for the device. The analyst now believes Apple could have sold up to 90 million iPhones in the December quarter, about 35% more than the analyst’s already strong forecast. Ives sees this upward trend continuing through the March and June quarters.

“We believe, based on the current trajectory and in a bull case, that Cupertino has the potential to sell north of 240 million units (around 250 million could be in the cards – a mind-boggling figure),” a Ives wrote in a note to customers, “which would easily eclipse Apple’s previous record of 231 million units sold in [fiscal year 2015]. “

Will Apple Stock Reach $ 225?

There have long been predictions of a supercycle for the iPhone maker. It has an installed base of over 1.4 billion active devices, with the iPhone accounting for around 950 million of them.

Current thinking suggests that up to 350 million iPhone buyers could upgrade their device this year. To put that number into context, Apple sold around 185 million iPhones in 2019. Considering the demand for a 5G-capable iPhone and the number of devices to be upgraded, it’s certainly possible that Apple will sell 89%. more iPhones in 2021 – but that’s certainly a high bar.

This article represents the opinion of the author, who may disagree with the “official” recommendation position of a premium Motley Fool consulting service. We are heterogeneous! Challenging an investment thesis – even one of our own – helps us all to think critically about investing and make decisions that help us become smarter, happier, and richer.

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