Please ensure Javascript is enabled for purposes of website accessibility

Apple Shares Will Surge 20% After Its Stock Split, According to This Analyst. Is He Right?

By Joe Tenebruso – Updated Aug 27, 2020 at 2:22PM

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

More gains could lie ahead for the tech titan's investors.

Apple's (AAPL -1.51%) gains so far in 2020 have electrified investors. Despite beginning the year with a market valuation of more than $1.2 trillion, the technology giant's stock has surged 70%, creating fortunes for its shareholders along the way. 

And yet, one analyst believes Apple shares are set to move even higher following its upcoming stock split.

A digital bull is climbing an upwardly sloping stock chart.

Analysts are growing increasingly bullish on Apple's growth prospects. Image source: Getty Images.

On Wednesday, Wedbush analyst Daniel Ives reiterated his outperform rating on Apple and boosted his price forecast from $515 to $600. His new target price represents potential gains of roughly 20% for investors, based on shares' current price near $500. 

Ives sees as many as 350 million people upgrading to Apple's upcoming iPhone 12 model -- which is expected to include much-awaited fifth-generation (5G) wireless technology -- over the next 18 months. The analyst says this iPhone supercycle is a "once in a decade" profit opportunity for Apple -- one that many investors are not yet fully appreciating.

Will Apple's shares continue to surge after its stock split? 

If iPhone 12 sales blow away expectations, as Ives predicts, then Apple's stock will likely climb to $600 -- and potentially even higher -- in the year ahead. The iPhone is, of course, Apple's most important product, and new phone sales tend to also boost sales of apps and services, all of which could help to drive profits sharply higher.

Apple's upcoming stock split could also help to fuel a rise in its share price. Despite the fact that a stock split does not alter the fundamental value of a business, many investors do get excited about the opportunity to buy more shares at a lower price. 

For these reasons, Apple's stock could approach Ives' $600 pre-split ($150 post-split) target price much sooner than many investors currently expect.

Joe Tenebruso has no position in any of the stocks mentioned. The Motley Fool owns shares of and recommends Apple. The Motley Fool has a disclosure policy.

Invest Smarter with The Motley Fool

Join Over 1 Million Premium Members Receiving…

  • New Stock Picks Each Month
  • Detailed Analysis of Companies
  • Model Portfolios
  • Live Streaming During Market Hours
  • And Much More
Get Started Now

Stocks Mentioned

Apple Inc. Stock Quote
Apple Inc.
AAPL
$150.43 (-1.51%) $-2.31

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

Related Articles

Motley Fool Returns

Motley Fool Stock Advisor

Market-beating stocks from our award-winning analyst team.

Stock Advisor Returns
329%
 
S&P 500 Returns
106%

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 09/24/2022.

Discounted offers are only available to new members. Stock Advisor list price is $199 per year.

Premium Investing Services

Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services.