Apple’s stratospheric growth rate looks set to continue unabated for some time yet – – despite an apparent stall in sales of its flagship iPhone – after its valuation topped $800bn for the first time.
Even that figure could be dwarfed by the shower of riches up for grabs in the future, with US broker Drexel Hamilton of the belief that the firm could hit the $1tn milestone.
Far from having peaked, a growing number of investors are of the belief that the technology firm is actually undervalued, with plenty of growth left in the tank.
Hamilton has set a target price for each of Apple’s 5.2bn shares at $202 to take it over the magic number, significantly higher than the $153 they achieved by the close of play on Monday (8 May).
This puts him somewhat at odds with prevailing orthodoxy that the public’s love affair with the iPhone may start to wane but with a market share stuck at 15%, Hamilton believes there is plenty of room for further growth even in a saturated market.