Bernstein analyst devises a path to trillion dollar market-cap for Apple Inc (AAPL) through an “Apple Family Plan”
Toni Sacconaghi – an analyst at Bernstein issued a research note today, reiterating an Outperform rating on Apple Inc (NASDAQ:AAPL) stock along with a price target of $135.
Moreover, the analyst also laid out a pathway for the tech giant to transit from just a hardware company into providing the customers with smartphones, tablets, a wide array of services and entertainment facilities. Additionally, bundling all these products and services would help Tim Cook’s company to reach the trillion dollar market-capitalization mark.
Mr. Sacconaghi also shared his family’s hypothetical example in his research report. He mentioned that his family requires three iPad Minis and a niPad Air – each of which are needed to be replaced every three years. Along with this, the analyst’s family also requires three iPhones which are replaced every two years. Furthermore, in his example, it would only cost around $140 each month, which is well below the analyst’s monthly cable bill and wireless bill.
On the other hand, adding Apple Music which would cost $15 montly, iCloud storage for $10 per month and a speculated but soon to be released OTTP television offering for $40 each month increases it to an estimated $207 per month which still accounts for savings.
Bernstein analyst also highlighted that Apple is taking the right and big steps in this direction with the iPhone upgrade program but the strategic shift to a full subscription model is likely to harm both the Apple’s financial statements and its ties with the telecommunication companies.
A total of 50 analysts at Wall Street provide coverage on Apple stock. Of these, 46 analysts recommend the investors to Buy the stock, another six analysts suggest a Hold while the remaining two analysts believe the stock is a Sell.
The 12-month consensus price target on the stock is $124.60, carrying a return potential of nearly 32% against the stock’s current price.