Apple inventory must surge 70% in subsequent 24 months, Gene Munster predicts

Tech investor Gene Munster isn’t predicting a blowout quantity when Apple studies quarterly numbers on Tuesday afternoon.

However, he holds one of the bullish perspectives on Wall Side road. Munster predicts Apple inventory will rally greater than 70% within the subsequent 24 months.

“There may be significant upside to the Apple tale. I think that this 12 months, Apple would be the best-performing FAANG inventory,” the Loup Ventures managing spouse mentioned Friday on CNBC’s “Buying and selling Country ” phase. “I believe this can also be nearer to $350 [a share]. … I do know traditionally it has now not gotten the more than one. However I believe that can slowly alternate.”

When the iPhone maker studies fiscal 2d quarter numbers, Munster expects profits in keeping with percentage and earnings to be fairly above Side road estimates. Consistent with FactSet, analysts expect Apple to earn $2.37 a percentage on $57.6 billion in earnings.

Munster, who lined the tech sector for 20 years at Piper Jaffray, is thought of as one of the crucial Side road’s main mavens on Apple. He sees the tech panorama riding the inventory to new highs, particularly when 5G telephones turn out to be a truth.

“The actual hurdle, when you have been going to boil this entire profits name down to at least one quantity, it is merely the services and products enlargement,” he mentioned. “I do know this has been a selected … space of focal point during the last couple of years. However it’s much more necessary now, given probably the most sizzle out of the iPhone tale is a little bit muted for the following few quarters.”

Apple has outperformed the S&P 500 by way of 14% because the December low. The inventory is up 39% since then, and 24% during the last 12 months.

However the run hasn’t come with out demanding situations. Apple warned in in January quarterly iPhone gross sales would most probably be underneath Wall Side road expectancies. And Microsoft has overtaken Apple as the arena’s Most worthy corporate.

On the other hand, Munster suggests there is sufficient within the pipeline to push Apple stocks upper.

“Long run, there are patently alternatives on services and products for merchandise that they are able to have, whether or not it is this gaming, this arcade provider, or this video streaming provider,” he mentioned.

There may be some other side to Munster’s bull case.

He believes it is a lot more than a tech corporate.

“Tech generally is a client staple,” mentioned Munster. “Whilst there are fluctuations within the companies like Clorox and Coca-Cola and companies just like the iPhone, I believe the similar underlying message is right. We can’t reside with out Apple. We can’t reside with out the ones different staples. “