Top analyst Brian White at Monness Crespi is coming out with a tall order for Apple Inc. (NASDAQ:AAPL) to hit over $1 trillion in valuation within the span of the next year. This is a massively undervalued global opportunity, White wagers, sizing up various meaningful capital return prospects waiting in the wings in the short-term.
As such, the analyst initiates coverage on AAPL stock with a price target of $235, which implies a 36% upside from current levels.
White asserts, “We view Apple as one of the most underappreciated stocks in the world with a valuation that remains depressed and our expectation that the company is poised to cross the $1 trillion market capitalization milestone over the next 12 months. In the near term, we believe there are attractive capital return opportunities to be unveiled and we look forward to another round of iPhone innovations in September.”
Based on a history of second quarter earnings calls serving as a platform for investor updates regarding capital return opportunities, the analyst looks forward with anticipation to May 1st for a capital return program update from the big AAPL machine. White predicts Apple may boost its program through March 2019 from $300 billion to a range of $400 to $500 billion.
“Despite Apple’s sizable revenue base, its low market share across the device landscape provides the company with an opportunity to gain share, as the middle class continues to grow around the world. We viewed the higher priced iPhone X as the beginning of a ‘durable cycle’ for the iPhone family with a more attractive ASP profile, rather than the ‘super cycle’ that some had called for, only to be disappointed out of the gate. We look forward to this cycle continuing with new innovative iPhones in September as Apple pushes deeper into the luxury smartphone market,” contends White.
By fiscal 2020, the analyst sees the company’s Services segment sustaining more and more attractive gains, on track to double fiscal 2016 revenue of $24.34 billion in sales. “As more ‘things’ become a computer,” White sees a confident investment in the tech giant.
Brian White has a very good TipRanks score with a 68% success rate and a high ranking of #65 out of 4,767 analysts. White yields 15.6% in his annual returns. When recommending AAPL, White earns 25.3% in average profits on the stock.
Brian White may be the most confident analyst on the Street betting on the big AAPL machine, but he certainly is not the only one. According to TipRanks analytics, optimism reigns over AAPL shares. Out of 29 analysts polled in the last 3 months, 16 rate a Buy on the tech giant while 13 maintain a Hold. Notably, the 12-month average price target stands at $190.55, marking a nearly 11% in return potential for the stock.