Apple will recover $ 1 trillion dollars after the analyst says the stock was ready to jump 20%

Apple Inc. shares rose sharply on Monday, pushing the company to $ 1 trillion in market value, with the prediction that the stock will rise more than 20% on stronger-than-expected sales of new iPhone 11 models.

Apple Store

AAPL, + 2.34%

was up 2.4% in afternoon trading Monday to pace the Dow Jones Industrial Average, pushing Apple's market capital over $ 1 trillion in intra-day trading and putting shares on track for its highest close in almost a year, since October 9, 201[ads1]8. The move came after a JPMorgan analyst raised its price target to $ 265 from $ 243 and forecast an uptick during the 2019 and 2020 iPhone shipments in a note Monday morning.

"We modestly raise our iPhone volume forecasts and expect investor sentiment on Apple shares to be significantly improved given the company's ability to drive upward volume expectations despite the product cycle in 2019 being largely considered a muted one," JPMorgan analyst Samik Chatterjee wrote in a note that maintained an overweight.

JPMorgan lifted its iPhone sales forecasts for the current quarter by an additional 1 million units and 3 million more for the fourth quarter of the calendar year, led by iPhone 11, which debuted to mid-year reviews in early September. The Wall Street company expects the upward trend to continue into 2020, when the company is expected to introduce 5G-enabled iPhones.

"We expect solid consumer interest in 5G phones at the premium end of the North American market, and Apple is well positioned to drive a larger share of the 2020 product cycle," Chatterjee wrote. He projects Apple will sell 198 million iPhones in 2020 and $ 200 million in 2021.

First Take: Things change at Apple, but the iPhone formula for hype remains the same

Spike in hardware sales – at a time when Apple is making more use of the Revenue Services Department – comes as a relief to investors, many of whom are annoyed by Apple's exposure to a US trade war with China and federal probes on how the company does business.

When Apple reported fiscal results for the third quarter of August, it revealed to for the first time in nearly seven years as iPhone sales accounted for half of its quarterly revenue. Step-by-step updates to the company's flagship product, combined with a stiff competition from Samsung Electronics Co. Ltd.

005930, + 1.34%

and cheap Chinese smartphone manufacturers such as Huawei, led a rioting reaction among consumers: iPhone sales in the third quarter were $ 25.99 billion, a 12% drop from the previous year a total of $ 29.47 billion.

Apple's Services division picked up the slack with 12.6% growth to a record $ 11.46 billion in the same quarter.

In recent days, the company has released a TV advertising flash for Apple TV +, a $ 4.99 monthly streaming service, and debuted this fall competing with Netflix Inc.

NFLX, + 1.03%

Walt Disney Co.

DIS, + 0.27%

AT&T Inc. & # 39; s

T, + 1.14%

HBOMax, and others.

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