Why These Apple Stock Predictions Are Still Too Low

Even with recent upward revisions, most analysts are still aiming too low with their Apple stock price predictions.

One big factor restraining the forecasts is how fast the AAPL share price has soared. Apple (Nasdaq: AAPL) stock is up more than 68% over the past 12 months and has doubled over the past two years.

Adding to the modest outlook is Apple's sheer size. The thinking is that the larger a company gets, the more difficult it becomes to achieve meaningful growth. Apple's $745 billion market cap is far and away the largest in the world. That's more than the market caps of Apple rivals Google Inc. (Nasdaq: GOOGL, GOOG) and Microsoft Corp. (Nasdaq: MSFT) combined.

But these analysts underestimate Apple's potential – and the Cupertino, Calif.-based company just gave a perfect example of why…

Apple Stock Predictions Raised – but Not Enough

Apple reported record December quarter earnings last month. And by record, we mean that Apple earned more profit than any company in history.

Since then, two dozen analysts have scrambled to raise their Apple stock price predictions. (Apple stock is covered by a total of 47 analysts.)

On Tuesday, Global Equities Research upped its target for AAPL stock to $165, while Cantor Fitzgerald raised its target to $160.

Of all the current AAPL stock predictions listed on the Analyst Ratings Network, the next highest is $150 (JMP Securities and Barclays).

Remarkably, 22 of the current Apple stock predictions are actually lower than the AAPL stock price today. Even the consensus price target is just $123.41. And three analysts rate Apple stock a "Sell."

But only two of the 47 current price targets are even in the ballpark of how high Apple stock will go…

David Zeiler

About the Author

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David Zeiler, Associate Editor for Money Morning at Money Map Press, has been a journalist for more than 35 years, including 18 spent at The Baltimore Sun. He has worked as a writer, editor, and page designer at different times in his career. He's interviewed a number of well-known personalities - ranging from punk rock icon Joey Ramone to Apple Inc. co-founder Steve Wozniak.

Over the course of his journalistic career, Dave has covered many diverse subjects. Since arriving at Money Morning in 2011, he has focused primarily on technology. He's an expert on both Apple and cryptocurrencies. He started writing about Apple for The Sun in the mid-1990s, and had an Apple blog on The Sun's web site from 2007-2009. Dave's been writing about Bitcoin since 2011 - long before most people had even heard of it. He even mined it for a short time.

Dave has a BA in English and Mass Communications from Loyola University Maryland.

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