Apple bull sees $3 trillion valuation on the horizon, says dip creates ‘golden buying opportunity’

Published Wed, Mar 10 202110:34 AM ESTUpdated Wed, Mar 10 202111:00 AM EST

The recent sell-off of Apple stock has presented a perfect buying opportunity for investors, according to Wedbush analyst Dan Ives. Apple shareholders have dumped stock in the company over the last month or so after the iPhone maker came off a historic December quarter. As a result, Apple's share price fell from a high of $143.16 on Jan. 26 to $116.36 on Monday. Apple was last seen trading at $120.74 at around 10:05 a.m. ET on Wednesday. "The recent sell-off creates a golden buying opportunity," Ives said in a note. Here, Wedbush's Ives outlines why he believes Apple's "supercycle party" could put the company on course for a $3 trillion market cap. Ives said that Apple could sell as many as 250 million iPhones in the 2021 financial year, an "eye popping figure" in his eyes and 30 million units more than Wall Street's 220 million prediction. Apple's current record for annual iPhone sales dates back to 2015, when it sold 231 million units. A report from Nikkei Asia on Wednesday said Apple has cut orders for iPhones by 20% due to low demand for the iPhone 12 Mini. The report said Apple plans to build 230 million iPhones in 2021, up 11.6% from 2020. Apple was not immediately available to comment. Wedbush believes there are between 350 million to 900 million iPhones worldwide that are currently "in the window of an upgrade opportunity." This is "translating into an unprecedented upgrade cycle for Cook & Co," said Ives, adding that demand in China looks to be particularly strong and remains a "linchpin" in Wedbush's Apple bull thesis. Ives said Apple's "supercycle party" will continue with the anticipated iPhone 13, which is expected to be launched in Cupertino, California, around September. "Initial Asia supply chain builds for iPhone 13 are currently in the ~100 million unit range compared to our initial iPhone 12 reads at 80 million units (pre-COVID) and represents a 25% increase YoY out of the gates," he said. Wedbush predicts that the iPhone 13 will have a 1 terabyte storage option, which is twice as much as the iPhone 12 Pro's 512 gigabytes. It also thinks that all of the iPhone 13 models will come with lidar technology that improves augmented reality features. Ives added that Apple's "5G driven product cycle will extend well into 2022 and should also benefit from a post vaccine consumer 'reopening environment.'" With a $2 trillion valuation, Apple is already the most valuable tech company in the world and the company's market cap is likely to carry on rising, according to Ives. "A $3 trillion valuation on the horizon for Cupertino in our opinion," he said. Wedbush maintains its "outperform" rating on Apple and a $175 price target. Its bull case target is $225. Correction: This story has been updated to accurately reflect Apple's current market cap.

The Apple logo is displayed at the Nasdaq MarketSite just before the opening bell in New York on Thursday, Aug. 25, 2011.

Scott Eells | Bloomberg | Getty Images

The recent sell-off of Apple stock has presented a perfect buying opportunity for investors, according to Wedbush analyst Dan Ives.

Apple shareholders have dumped stock in the company over the last month or so after the iPhone maker came off a historic December quarter. As a result, Apple's share price fell from a high of $143.16 on Jan. 26 to $116.36 on Monday. Apple was last seen trading at $120.74 at around 10:05 a.m. ET on Wednesday.

"The recent sell-off creates a golden buying opportunity," Ives said in a note.

Here, Wedbush's Ives outlines why he believes Apple's "supercycle party" could put the company on course for a $3 trillion market cap.

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Apple bull sees $3 trillion valuation on the horizon, says dip creates ‘golden buying opportunity’

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