Analysts continue to push up their 18-month price target – leaving it parked currently at $136.08, says S&P Capital IQ. The highest analyst target is at $165 – which is just shy of the mark needed to hit $1 trillion. Apple's business model of controlling the hardware – such the upcoming Apple Watch due to be announced next week – but leaving the platform open makes it a "dynamo," writes UBS analyst Steven Milunovich in a note to clients. He was a $150 price target on the stock.
It's not just analysts rooting for Apple. Famed investor Carl Icahn has repeatedly said Apple is destined to become the first U.S. company to cross the $1 trillion barrier in terms of market value. And New Constructs, which uses a computer model to gauge the value of stocks used expected future cash flows, recently revised its model to show the stock as "attractive" again even with shares at new all-time highs.
Read MoreWhy Apple's competition hopes its Watch is a huge hit
Yet, reception of the Apple Watch could be the fuel that either supports the $1 trillion idea – or gives proof to the bears' claims.
Apple remains reliant on the iPhone – and it remains to be seen how long consumers are willing to stay on the two-year upgrade treadmill. Costly monthly cellular plans with big (and largely invisible installment loans on iPhones) could look outdated as smartphones are "good enough" and don't require such frequent upgrades. New low-cost phones announced this week, sell for a fraction of iPhones, and are also good enough for most people. The stock's valuation is also hitting levels that have been problematic in the past.
Bears are wise to point out mania stocks tend to look most unstoppable, right when they're most vulnerable. We'll see how this one pans out.
via apple - Google News http://ift.tt/1B1R00R
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