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Apple Car to Hit the Road by 2025? This Analyst Thinks It’s Possible

Apple (AAPL) stock saw out last week notching a new all-time high whilst reclaiming top spot as the world’s most valuable company by market cap.

These milestones can be attributed to two words which when put together in the current climate have the instant ability to add value to any company: electric vehicle (EV). Or in Apple’s case of course, the Apple Car.

A Bloomberg article stated that the company is closer than previously expected to possess the tech needed to manufacture an autonomous vehicle, which could potentially hit the road by 2025.

Such a target is not necessarily a surprise to Wedbush analyst Daniel Ives, which thinks a 2024-2025 debut is likely.

“We continue to believe it’s a matter of when, not if, Apple enters the EV race and this will add another $30+ per share of TAM to the Apple growth story over the next few years given the golden age of EV transformation on the horizon,” the 5-star analyst said.

Ives thinks the car will be the product of a partnership which Apple is likely to announce next year. The analyst says the company has spent several years working on its “autonomous vision” and expects an “established auto player” to partner with the tech giant initially in what would amount to a “golden partnership” in the EV space. Who’s eligible for this coveted slot? Ives counts Hyundai, Tesla, GM, Ford, or VW as possible partners.

Given the “margin and financial model implications” ahead, not to mention the “gargantuan” endeavour’s element of risk, Ives thinks Apple would be wise to have a partner to share this drive down the EV path.

All in all, Ives rates AAPL shares an Outperform (i.e. Buy) along with a $185 price target. This gives the stock ~15% upside potential. (To watch Ives’ track record, click here)

The Street’s average target is a more muted $166.92, implying just modest 3.5% growth over the coming months. Most analysts are still in Apple’s corner, but not all are on board right now; the stock’s Moderate Buy consensus rating is based on 21 Buys vs. 6 Holds and 1 Sell. (See Apple stock analysis on TipRanks)

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Disclaimer: The opinions expressed in this article are solely those of the featured analyst. The content is intended to be used for informational purposes only. It is very important to do your own analysis before making any investment.