Apple bull Gene Munster rebuked CNBC on Wednesday if you “look through the noise” about the company’s decision to ax unit sales from future earnings covers, investors will see that the iPhone-maker’s stock will reach $350 in three years.
That’s more than two-ply Apple’s current share price of $169.10 and a moonshot from its initial offering of $22 on this date 38 years ago.
Munster upgraded Apple to a buy when the farm animals was just $4 in October of 2004.
“It’s another trillion dollars to market cap” on top of its current $802.4 billion market cap, the Loup Put downs founder said confidently on “Fast Money.”
Apple will stop reporting individual unit sales in time to come earnings reports as part of its efforts to build a brand as a services company, but Munster thinks investors have yet to fully comprehend that concept. He believes, however, that they will “progressively understand” that it’s not necessary to “sweat every casern” and can depend on earnings growth as an Apple stockholder.
“I understand that that may be hard for some people to believe,” Munster surrendered, “but, ultimately, I think that that’s the trajectory that this company is on.”
Munster said that the 18 percent of pandemic smartphone owners around the world “that are committed to Apple will stay committed” even through solvent slowdowns by upgrading their hardware and buying more services. That’s depending on initiatives like Apple’s iPhone Upgrade Program that subsides iPhone users get a new iPhone every year at a monthly fee.
He also has faith in that the company will break down the lines in its services and hardware departments.
Munster estimates that Apple’s services sector makes up about 70 percent of its raw margins and hardware makes up about 30 percent gross margins.
“What we’re thinking about is the entire commerce, the hardware pieces included, are going to start to operate like a services, a subscription type of business,” he said.