Shares of Apple Inc. (NASDAQ:AAPL) are up more than six points in early trade Friday after Wedbush Securities analyst Daniel Ives raised his price target to $425, representing 31.85% upside to Thursday’s close.
Ives said in a note to clients that the tech giant is best positioned to take advantage of the shift to 5G smartphones in FY/20, alongside a growth in its next big business, the services division.
“[We] believe Cupertino has a unique opportunity to capture this delayed super cycle opportunity with a major 5G cycle [the negative economic impact of the coronavirus pandemic has delayed upgrades and hurt 5G connectivity demand] on the horizon which will include a host of new smartphone versions/models for iPhone 12,” Ives noted, adding that Apple could become the first company to cross $2 trillion in market cap by the end of next year.
As of writing, Apple shares have reached all time highs. Ticker is up 1.76%, or $5.73, to $328.05. Of the 41 analysts who cover AAPL, 13 have strong buy ratings, 10 have buy ratings and 18 have hold ratings, with an average price target of $317.
The iPhone maker is currently valued at “only” $1.41 trillion.