Citi’s senior tech analyst Jim Suva has projected that Apple’s (NASDAQ: AAPL) stock will surge to $200 in 2022 in a year he expects the company to build on its gains inspired by the coronavirus pandemic.
Speaking to CNBC, Suva indicated that the growth would emerge despite a section of the market harboring a perception that Apple has attained its climax considering it has a significant market cap.
He noted that Apple’s expected new product launches would drive the stock with the tech giant intending to capitalize on changes in consumer behavior that emanated from the pandemic like increased gaming and remote meetings.
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Suva also cited improved iPhones and the highly anticipated AR glasses as products that will drive interest in the stock. Overall, the analyst considers the new product line under the AR glasses a critical driver.
According to Suva, Apple’s current market value does not reflect the company’s new product categories, but in 2022, the prospects will favor the company.
Furthermore, he pointed out the current demand for Apple’s products during the holiday season is a key catalyst for growth. Suva stated that people staying at home are bound to focus more on gaming.
Beating supply chain constraints
Additionally, Suva believes that if Apple manages to beat the supply chain constraints, the stock will likely surpass the $200 mark. Notably, he pointed out that a bleak future awaits the company, stating that the supply challenges will limit the stock to under $200 while suggesting that the shortcomings will still exist in the new year.
“If there weren’t these supply chain constraints, the number would be higher, but demand is outpacing the supply and almost everything in technology. Apple is getting its fair share. If not more. They are entitled to because they are the world’s biggest company, and they are getting a lot of supply,” said Suva.
Lastly, Suva believes that continued coronavirus uncertainty is a good problem for Apple since it will increase its product demand with people likely to stay at home. On the flip side, he suggests that the health crisis will continue complicating the supply chain challenges.
Elsewhere, Dan Ives, an analyst at investment firm Wedbush is also bullish about Apple. As previously reported by Finbold, Ives projects that Apple will hit over $3 trillion in market capitalization by the end of 2022, mainly due to demand for the company’s products.
Related video: Citi’s Jim Suva lays out five reasons Apple’s stock will grow
