Call‘s (NASDAQ: AAPL) profit so far in 2020 have investors electrified. Despite the start of the year with a market value of more than $ 1.2 trillion, the technology giant’s share has gone up 70%, making a fortune for its shareholders along the way.
And yet, one analyst believes that Apple shares will move even higher after the upcoming stock split.
Analysts are growing faster on Apple’s growth prospects. Image Source: Getty Images.
On Wednesday, Wedbush analyst Daniel Ives reiterated his outperforming rating on Apple and raised his price forecast from $ 515 to $ 600. His new target price represents potential gains of roughly 20% for investors, based on the current share price close to $ 500.
Ives sees as many as 350 million people upgrade to Apple’s upcoming iPhone 12 model – which is expected to include much-anticipated wireless technology (5G) (5G) – over the next 18 months. The analyst says that this iPhone superbike is a “once in a decade” profit opportunity for Apple – one that many investors do not yet fully appreciate.
Will Apple’s shares continue after its share split?
If iPhone 12 sales expectations blow away, as Ives predicts, Apple’s share will likely climb to $ 600 next year – and potentially even higher. The iPhone is, of course, Apple’s main product, and new phone sales also tend to boost sales of apps and services, all of which can help drive higher profits.
Apple’s upcoming stock split could also help boost its share price. Despite the fact that a share split does not change the fundamental value of a company, many investors are excited about the opportunity to buy more shares for a lower price.
For these reasons, Apple’s share was able to approach Ives’ target price of $ 600 pre-split ($ 150 post-split) much earlier than many investors are currently expecting.
