Apple has the chance to be a $1.5 trillion behemoth, analyst says

Apple shares are compelling over the coming year, Wedbush says. The firm initiated coverage of Apple with a $310 price target — more than 40% above where shares were trading Thursday — and added the stock to its “Best Ideas List.”

“Apple’s valuation can approach the $1.5 trillion level based on our analysis of the monetization potential of its unparalleled consumer installed base over the coming years coupled by further multiple expansion around the services business,” Wedbush analyst Daniel Ives said in a note sent out to clients on Thursday.

The smartphone maker released three new iPhone models — XS, XS Max, and XR — in September, and discontinued all other older versions. This arrangement shows Apple is determined to catalyze fence-sitting iPhone customers onto their next smartphone, capturing the underlying demand and upgrades among customers that have decided to bypass previous models, Ives said. 

And China consumer demand is a key driver.