Apple Stock (NASDAQ:AAPL) is one of the most traded stocks on any market, providing investors with high growth returns over the past decade. AAPL stock had a strong 2021, returning 33% to investors.
In fact, with such strong gains over the past year, Apple Inc is closing in on a $3 Trillion Market Cap. This is a remarkable achievement for the Tech Giant, who reinvented and dominated the personal tech device market.
Now investors are asking, how will Apple Stock perform over the coming months, especially with increased supply constraints and lowered investor confidence? This article will dive into the AAPL Stock Forecast over the next 12 months.
AAPL Stock Forecast: Why Apple Stock is a Wallstreet Favourite
Firstly, Morgan Stanley analyst Katy Huberty has a $210 price target on Apple Stock, reiterating AAPL as her top pick for 2022. The analyst noted that Apple had a “clean” December quarter beat while also boosting their March guidance.
The analyst was particulary surprised about the Mac and Services growth, being “particularly strong”. With tougher supply constraint in 2021, the analyst noted the strong results “illustrate the strength and stability of Apple’s product and services ecosystem.” The forecast from Morgan Stanley suggest Apple has room to run in 2022, with a total upside of 24%.
The second Wallstreet analyst to name Apple as their top pick for 2022 is Samik Chatterjee from JP Morgan, who lifted their price target on Apple Stock to $210 as well.
Chatterjee remains bullish on Apple, forecasting further revenue growth as iPhone 13 sale realisations come into play. As noted in our previous article, Chatterjee expects iPhone sales to reach 246 million units in 2022 with “substantial upside” relative to consensus expectations.
Can Apple Reach $400 Billion In Revenue By 2022?
Apple is one of the largest businesses in the world, generating $365 Billion in the 2021 Fiscal year. Very few businesses can top this mammoth number, with only the likes of Amazon matching Apple’s sales.
Wallstreet forecasts Apple to generate $381.56 Billion in sales for 2022, a 4.3% improvement from 2021. For an established business such as Apple, revenue growth at 4.3% is impressive considering the company is closing in on $400 Billion annually.
Interestingly, majority of the revenue forecasts don’t include the possibility of Apple’s AR glasses launch in 2022. Realised revenues on this product is another catalyst investors are excited about, if Apple can launch this tech next year.
Apple AR/VR Concept expected in the second half of 2022 according to Wedbush
The iPhone 13 sales in 2022 is not the only catalyst that has investors excited. Wedbush analyst Daniel Ives expects the AR Apple Glasses to debut in the second half of 2022.
The analyst noted the AR development by Apple opens up a massive market opportunity and a chance for Apple to break into the broader metaverse ecosystem.
In Fact, Daniel Ives sees the AR project adding $20 per share to the SOP value of Apple stock. Lastly, Daniel Ives remains bullish on his Apple Stock Forecast, including the possibility of 40 Million iPhones sold over the holiday period.
AAPL Stock Forecast: The Bottom Line
Overall, the recent targets from JP Morgan and Wedbush illustrate further upside in both iPhone 13 sales as well as further tech developments including the Apple Glasses in 2022.
In addition, over the holiday period Apple is expected to deliver close to 40 Million iPhones. The positive outlook on the iPhone 13 is a positive surprise for investors, as semi-conductor shortages haunted the companies production outlook earlier this year.
We will continue to update our readers on the AAPL Stock Forecast as we move into 2022.
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The content above is strictly for informational purposes only and is not financial advice nor does it constitute a recommendation. Youth Investment Group has no liability for personal financial interests or investment decisions. You should make your own investment decisions based upon your own research and what you believe is best for you.