Gene Munster: Approaching $3 trillion market value, Apple’s best days are yet to come

Longtime Apple analyst, Loup Funds’ Gene Munster, says that a Apple approaches the $3 trillion market value milestone, the company’s best days are yet to come.

Gene Munster for Loup Funds:

Over the past month, shares of AAPL are up 21% to $179.50. If the stock reaches $186, it will be the first company to cross the $3 trillion valuation milestone. Hitting this mark will be a catalyst for investor debate on how high can Apple’s valuation go. My view is grounded in the same logic I used when Apple crossed the $1 trillion and $2 trillion valuation thresholds, rooted in the simple truth that investing is about predicting what’s next. I believe Apple’s best days are yet to come, based on the current business and future business Apple will likely add.
My current thinking is that in 2022 investor euphoria will emerge in anticipation for two new product categories (metaverse and autonomy) that should increase the multiple on AAPL. Given the size of the new addressable markets investors will consider, I see an increased multiple to 35x as reasonable. Adding in my belief that in FY23 Apple will earn $7, yields a $250 share price, about 38% higher than current levels.

MacDailyNews Take: We concur. As Apple approaches a market value of $3 trillion, it’ll be just a waypoint, nowhere near the ceiling.
Apple deserves to be worth considerably more than $2 trillion. The company remains significantly undervalued. — MacDailyNews, August 10, 2020
Trillion, schmillion. Over time, Apple will go much higher than that. The company is currently horribly undervalued. – MacDailyNews, March 1, 2018
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