Please ensure Javascript is enabled for purposes of website accessibility

Apple Stock Could Surge 62% to $225, According to This Analyst

By Danny Vena - Jan 25, 2021 at 11:18AM

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

Is he right?

Shares of Apple (AAPL -1.92%) have already climbed 79% over the past year, but will surge to new all-time highs in 2021.

That's according to Wedbush analyst Daniel Ives. Today, Ives raised his price target on Apple's stock to $175 from $160, but also laid out a bull case for why the stock could climb to as high as $225. His new base target represents potential gains for investors of roughly 26% over the stock's closing price of about $139 on Friday. It's his compelling argument for the bull case, however, that should have investors more excited. 

Front and back images of the red iPhone 12.

The iPhone 12. Image source: Apple.

Ives cited the potential for "eye-popping" iPhone sales, saying that checks of Apple's supply chain in Asia showed strong demand for the device. The analyst now believes Apple could have sold as many as 90 million iPhones during the December quarter, roughly 35% over the analyst's already robust forecast. Ives sees this upward trend continuing over the March and June quarters.

"We believe based on the current trajectory and in a bull case Cupertino has potential to sell north of 240 million units (~250 million could be in the cards -- an eye-popping figure)" Ives wrote in a note to clients, "which would easily eclipse the previous Apple record of 231 million units sold in [fiscal year 2015]."

Will Apple stock hit $225?

There have long been prognostications of a supercycle for the iPhone maker. It has an installed base of more than 1.4 billion active devices, with the iPhone accounting for an estimated 950 million of those. 

The current thinking suggests that as many as 350 million iPhone buyers could upgrade their device this year. To put that number in context, Apple sold roughly 185 million iPhones in 2019. Given the demand for a 5G-enabled iPhone, and the number of devices due for an upgrade, it's certainly possible Apple could sell 89% more iPhones in 2021 -- but that's certainly a high bar.


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.
$140.36 (-1.92%) $-2.75

*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 service.

Stock Advisor Returns
S&P 500 Returns

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 05/25/2022.

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.