Apple Inc (NASDAQ: AAPL) is already up about 25% from its low in June, but Gene Munster (Co-Founder of Loup Ventures) is convinced the iPhone maker still has a lot of room to the upside.
Munster defends his bullish view on the Apple stock
Munster recommends that long-term investors buy Apple stock here as it will be worth $250 a share over the next couple of years. Explaining his bullish view on CNBC’s “The Exchange”, he said:
It’s arguably the world’s greatest company. 70% of their products I deem as necessities, 30% are discretionary. They also have an opportunity to get into new markets. These are things that can really kickstart growth.
“AAPL” could sure be a great hedge against a looming recession if that many of its offerings, indeed, are non-discretionary.
The multinational is expected to unveil the iPhone 14 and a new Apple Watch at its “Far Out” event on September 7th. Wall Street also has an “overweight” rating on the Apple stock.
Apple is committed to diversifying its business
Apple is penetrating new markets, including health, automotive, and augmented reality, which, as per Munster, could prompt the next leg up in the stock price.
They’ve got a great core business and any of those three can unlock some significant new market potential. You can recount many times when Apple goes into new markets, that essentially unlocks higher multiple.
Apple will soon bring more ads to preloaded apps on the iPhone as well in an attempt to accelerate its revenue from services. In its latest reported quarter, services brought in $19.60 billion up 12% on a year-over-year basis. Apple stock is still down 10% for the year.
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