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Apple: Analysts eyeball US$3 trillion as they await Q2 earnings

Apple releases its second-quarter earnings on Tuesday.

Apple Inc. - Apple: Analysts eyeball US$3 trillion as they await Q2 earnings

It was less than two years ago that Apple Inc (NASDAQ:AAPL), the world’s most valuable company, earned the distinction of becoming the world’s first trillion dollar company.

Back in autumn 2019 analysts wondered whether the tech giant could remain airborne at those levels.

Today a far less sceptical Wall Street reckons Apple’s valuation could soon push through $3 trillion.

Daniel Ives, at broker Wedbush, said: “Apple remains the top tech name to own.”

His analysis suggests the Cupertino, California-based titan is worth $185, giving it a ‘market cap’ of $3.1 trillion.

“The tech bull cycle will continue in our opinion its upward move in in the second half of 2021 and 2022 given the scarcity of growth names/winners in this market looking ahead on the heels of the fourth industrial revolution playing out among enterprises/consumers,” Ives said in a note to clients.

“Our favorite large cap tech name to play the 5G transformational cycle is Apple, with the one-two punch of its massive services business and iPhone product cycle translating into a $3 trillion market cap for Cupertino during 2022 in our opinion.”

Currently, the company is worth $2.5 trillion based on a share price of just shy of $150.

The Wedbush analyst is not alone in predicting Apple will push beyond the $3 trillion mark.

Five star rated Brian White, of boutique equity research firm Monness Crespi and Hardt is one of those. In research quoted by CNBC, he said he reckons the shares could ultimately wind up changing hands for $180 each.

The Street is predicting Apple will weigh in with third-quarter earnings of $1 a share on revenues of $73 billion on Tuesday.

However, the tech sector’s number crunchers are already looking beyond the latest numbers and towards September’s launch of the latest iPhone. Let’s hope 13 is lucky number for CEO Tim Cook and his team.

If the release of a new handset could act as a major valuation catalyst, then antitrust legislation would undoubtedly have the reverse effect.

The House Judiciary Committee’s Antitrust Subcommittee passed six bills aimed at curtailing the power of Big Tech.

Relevant to Apple specifically are the Ending Platform Monopolies Act and American Choice and Innovation Online Act.

“We believe the power of the App Store and Apple’s preinstalled proprietary app strategy are key antitrust issues for the company.

“Despite our expectation of greater scrutiny around Apple, we continue to believe the company remains that ‘shining city upon a hill’ in the Big Tech world,” Monness analyst White said to CNBC.

Quick facts: Apple Inc

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Price: 148.79 USD

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