Apple: 3 Reasons Why The Stock Could Trade Higher

Jun. 27, 2022 4:15 AM ETApple Inc. (AAPL)32 Comments
Cavenagh Research profile picture
Cavenagh Research
3.7K Followers

Summary

  • Apple has outperformed for decades, but the company is arguably still a bargain.
  • I present three arguments why I believe Apple shares could trade considerably higher within the next 12-36 months.
  • New market opportunities including (1) VR/AR and the Apple Car, (2) accelerating strength in Apple's service portfolio, and (3) continued financial engineering.
  • I value AAPL shares based on a residual earnings framework and calculate a fair base-case target price of $247.51/share, implying upside of >75%.

Apple Store

Nikada/iStock Unreleased via Getty Images

Thesis

Apple has outperformed for decades, but the company is arguably still a bargain. In this article, I present three arguments why I believe Apple (NASDAQ:AAPL) shares should and could considerably higher within the

Apple price target

Seeking Alpha

Apple valuation

Analyst Consensus; Author's Calculation

Apple valuation sensitivity table

Analyst Consensus; Author's Calculation

This article was written by

Cavenagh Research profile picture
3.7K Followers
5y experience as an investment analyst for a major BB-Bank. Currently working towards the CFA charter. Passion for risk-assets (Growth, Contrarian, Emerging Market) ex-colleague and close friend of Investor Express

Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Additional disclosure: Not financial advice.

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