Apple Inc (NASDAQ:AAPL) is set to become the first company to reach a US$1trn market capitalisation with the release of its iPhone 8 expected to boost shares, RBC Capital analysts repeated in a note today.
The company’s market value has gained US$56bn since reporting third quarter earnings that beat expectations last week and RBC believes there is more upside left as the release of the 10th anniversary iPhone looms.
READ: Apple seems to play down iPhone 8 delay rumours with positive outlook on final quarter
Apple, which has a current market capitalisation of US$826bn, is expected to launch its iPhone 8 in September with a premium version costing about US$1,000, providing a lift to average selling prices.
RBC analysts said Apple’s stock has historically seen a median return rate of 15.6% in the 90 days before the launch of a new product cycle.
The analysts added that the group’s strong gross-margin performance, coupled with an expected improvement in China sales next quarter, should sustain the momentum in the share price after the iPhone is launched.
RBC repeated an ‘outperform’ rating and US$176 price target.
It’s not the first time RBC has guided towards a US$1trn market value for Apple. In May, it said it saw it reaching the milestone in the next 12 to 18 months.
Other analysts also see it reaching the $1trn mark, including Drexel Hamilton, which was the first to make the prediction.
Apple shares in New York added 0.22% to $160.44.