Apple Inc., the world’s largest smartphone maker, has hit its $20 billion market cap target, but some analysts are skeptical that the company will achieve the feat before the end of 2017.
Apple Inc. stock has rallied more than 14% in 2017, but analysts say that could change soon.
The company could see its stock price climb as much as 20% to $24 billion in the first half of 2018, according to Bloomberg Intelligence.
The stock is trading above $20 per share in India.
If Apple’s stock gains the same rate in 2018 as it did in 2017 it could reach $30 billion in 2020, Bloomberg Intelligence reported.
“There are many reasons for Apple Inc.’s bullishness, but we are expecting the company to reach its target sometime in the third quarter of 2018,” said Amit Singhal, head of strategic research at India-based brokerage Ambuja, in a note on Tuesday.
“Apple Inc.’ s performance in the second half of 2017 has helped drive the market capitalization to over $70 billion, but the company’s stock has not yet reached $20.
The valuation target is still very high, so we believe the company could hit the target before the financial year ends.”
Apple shares are currently trading at $19.25 a share, up from $18.99 a share a year ago.
Apple has long been seen as a leading contender in the smartphone market, and investors are bullish on the company because of its recent iPhone launches.
Analysts at IHS Markit expect Apple to break into the $20-billion market cap in 2018, when its market cap will be at around $62 billion.
The forecast sees Apple hit the mark by mid-March.