By
Chimamanda U. Martha
May 10th, 2024
Evercore ISI analyst Amit Daryanani predicted Apple to reach a $2 trillion market cap in the next four years. According to Daryanany, this will happen when Apple (AAPL) stock gets to $550 per share.
Back in 2018, Apple Inc (NASDAQ: AAPL) became the first company in history to reach a $1 trillion valuation. Now, the tech giant is heading towards another milestone. According to Evercore ISI, Apple may surpass $2 trillion, again becoming the first-ever company with such valuation.
On Monday, Evercore ISI analyst Amit Daryanani predicted Apple to reach a $2 trillion market cap in the next four years. His prognosis is based on Apple stock that has been rallying to near the record closing level of $327.20 it hit in February. Yesterday, Apple stock closed at $321.85, or 1.23% up. After hours, Apple shares declined by 0.34% to $320.75. At the time of writing, in teh pre-market, AAPL stock is at $323.62 (+0.55%).
Amit Daryanani believes that Apple stock will climb higher and higher, which will lead to the giant’s valuation hitting $2 trillion, much above the current $1.389 trillion. According to Daryanany, this will happen when Apple stock gets to $550 per share. The analyst has also shifted his price target for Apple stock to $360 from $345.
Apart from stock growth, Apple is expanding its range of services, which will also drive the company’s valuation upwards. For example, Apple has recently acquired virtual reality company NextVR for $100 million, and now it is expected the giant will come up with a new VR product.
Further, Apple is expanding its App Store, Apple Podcast, iCloud, Apple Music to additional markets in Africa, Europe, Asia Pacific. To improve Apple TV+, the giant broadened content by acquiring rights to older shows from Hollywood studios. Recently, Apple also released digital contact tracing technology in collaboration with Google LLC (NASDAQ: GOOGL) (NASDAQ: GOOG).
Following Daryanani, with multiple expansion, Apple can get $23 in earnings per share in fiscal 2024, compared with $12 in fiscal 2019.
Daryanani said:
“This implies EPS growth of 14% over next several years driven by combination of operational tailwinds and buyback support.”
He added:
“Apple continues to offer the best risk/reward in large-cap tech and long-term investors should use any weakness to add to positions.”
Apple’s Return to the Club
Because of the coronavirus pandemic, Apple slipped its position, losing nearly 31% of its valuations in over a month. In just the first two months of 2020, Apple’s retails sales have plunged more than 20%. But thanks to getting back to normal activity, reopening its offices, and improving its services, Apple quickly became a $1 trillion company again and returned to the club of the world’s most valuable brands.
Other companies from this list have also suffered due to the pandemic. However, they survived and even benefited from the situation. A prime example of capitalizing on the COVID-19 outbreak is Amazon.com Inc (NASDAQ: AMZN). The retailer has seen incredible growth in sales.