Apple (NASDAQ:AAPL) will be the first $4 trillion market cap company by the end of 2024. That's according to analysts at Wedbush, who made the claim in a note to clients Wednesday.
Wedbush's view is based on the pace of growth and monetization the firm estimates for Apple over the next year. Wedbush maintained an outperform rating and a $250 per share price target on the stock.
"While there are lingering worries around iPhone shadow government bans in China for now this issue is very containable and has not dented demand for Cupertino in this key region based on our recent checks," the analysts said.
The analysts added that they believe Apple is heading into a strong holiday season over the coming weeks that should translate into iPhone 15 growth that exceeds Street estimates for the December quarter. Furthermore, they have not seen any negative revisions around iPhone units coming out of their recent Asian supply chain checks into holiday season/early 2024.
Based on a sum-of-the-parts valuation, Wedbush believes Apple's Services business is worth $1.5 trillion to $1.6 trillion on a standalone basis, and "this re-rating is a key dynamic for the stock over the next few quarters."
"With a growing iPhone business again into 2024 on the heels of what we view as a new tech bull market beginning, Apple is poised to have a strong year ahead," the analysts argue.