Apple Stock Forecast is revised HIGHER at $195

Apple Stock Forecast  is revised HIGHER at $195

Apple Stock Forecast: AAPL forecast for the next 12 months is $195. The Weekly Outlook is Negative with a trading range between $165 and $175.

Apple Stock Forecast 2022: Latest Price

  • Apple is facing headwinds through a ‘potential’ anti-trust cases against it. However, the stock is likely to recover much of its recent losses this week as the probability of negative macroeconomic news is low
  • No Insider trades have been reported in the last 2 weeks
  • Apple has apparently trademarked its VR headset and processor
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Apple Stock Forecast: Can Apple stock price reach $180?

Here are a few reasons why AAPL can reach $180

  • Apple has rich free cash flow Apple has often rewarded investors with share buyback programs and fantastic dividends. Apple is able to do this with its strong free cash flow. Apple has $108 billion of free cash flow over the 12 trailing months. This figure is very good given that Apple has spent $91 billion on a share repurchase program and $15 billion in the form of dividends over 12 trailing months.
  • Strong Demand for Products Apple products always witness strong demands across different regions. In the third quarter, the company reported a sales growth of 2% YoY, which is in addition to the 36% growth last year. Tim Cook, CEO of Apple Inc, said that there was not enough supply to test the demand but it can be said that there is a minimal impact of high inflation and macroeconomic headwinds on Apple Inc products’ demand.
  • Opportunity for servicesInvestors could probably think that the growth potential of Apple products is minimal and hence, the company’s best days are over, but as per management, they have a dedicated user base, and larger the user base, the company has the opportunity to monetize with native and third-party services. So, going forward subscription revenue can increase multifold and that can take the company and share price to new heights. 

Apple Stock Forecast 2022: Forecast for the Next 12 months

SourceTarget
Apple Share Price Forecast$195
Bank of America$185
Credit Suisse$201
Keybanc$185
KeyCorp$185
Wedbush$220

Apple Stock Forecast 2022: Positive Factors

  • Strong Q3 ResultsApple Inc posted excellent Q3 results
    • Revenue increased 2% YoY to $83.0 billion
    • Net sales in services up by 12%
    • Americas grew 4%, Europe grew 2%
    • iPhone sales increased 3% to $40 billion
    • Gross margin increased by 2%
  • Robust Smartphones Demand
    • The smartphone market was around $270 billion last year and is expected to grow at an annual growth rate of 7.6%
    • Apple controlled nearly 17.5% of smartphones globally in 2021, up from 16 percent in 2020.
    • This percentage further increased in the case of 5G in which Apple controls almost 28% of phones globally.
  • Regular Share Buyback Program and Excellent Dividend
    • Free cash flow for Apple in the last four quarters has crossed $100 billion and surprisingly it has rewarded its shareholders handsomely by paying $14 billion in dividends last year. Apple is announcing regular buyback programs and in turn, boosting shareholder returns by reducing the number of free-floating shares in the market. Apple had 22 billion shares in 2017 and by end of the fiscal year 2021, only 16.86 shares are left. It means that the percentage of ownership for every shareholder has increased proportionately in the last five years.
  •  Sticking to the Basics
    • While Apple is not bombarding the market with breakthrough products every couple of years and management is sticking to the basics, free cash flow is allowing it to reinvest and improve products and its services which are driving up revenues by increased sales. Apple is investing a large chunk of revenue in R&D – which stood at $23 billion in the past year and hence we can expect a path-breaking product anytime soon. 

Apple Stock Forecast 2022: Negative Factors

  • AR/VR Headsets Will Not Contribute Towards Revenue in Coming Years – While it is great news that Apple is launching AR/VR headsets based on metaverse technology as soon as the second half of 2022 or in 2023. But the real question remains whether it will contribute to revenue in the balance sheet in the coming years. The headset will be priced higher than the watch around $1000 and this will significantly reduce its sales in the initial years. It is expected to have minimal contribution in revenue at least till 2026. Also between watches and AirPods, headsets will struggle to find a place.
  •  Bad Local and Global Cues- Apple Inc is a great company with strong financials. But lately due to inflation fears in the US economy, investors have been harsh on growth stocks. With the Federal Reserve beginning to reduce the size of its balance sheet, many are forecasting a recession which in turn may reduce demand for Apple devices.

Apple Stock Forecast 2022: Performance Chart

Stock Name1 MonthYTD
Apple Stock-12.1%-17.2%
NASDAQ9.89%-27.6%

Apple Stock Forecast This Week

Overall Partially Negative
1. Market’s WisdomNegative
1a. Market DataLower
1b. Technical Analysis RecommendationSell
2. Crowd’s WisdomNeutral
2a. Crowd’s BuzzLower
2bSocial Media SentimentHigher

Forward PE: $28.39

Also Read: Apple Stock Split

Also Read: Apple Stock Forecast

Apple Stock Forecast 2022: Conclusion

There is no doubt that Apple Stock Forecast 2022 is headed in the right direction by meticulous planning and execution and will touch new heights as a company in the coming years. They are spending huge amounts on research and development and still improving their existing services and products to hold on to their loyal fan base. Analysts are expecting it to grow at 15% over the next five years, its earnings could increase from $5.61 per share to $35 per share in the next five years.

The stock is trading at 28 times earnings and a similar ratio will take it to $980 stock price in the next 10 years.

Overall, Apple is a great future company with great prospects but global cues are not conducive currently for the bull market, a long-term investor should not be wary of these uncertainties and should keep Apple Inc on the watch list.

-Vineet Agarwal

Note: Crowdwisdom360 collates Predictions and data from all over the net and has no in-house view on the likely trends in the Stocks or Crypto Coins. Please consult a registered investment advisor to guide you on your financial decisions.

Apple Stock Forecast 2022

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