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CUPERTINO, Ca. – Top investment analysts raised price targets for Apple shares as company outperforms it peers. As shares continue to surge, some are projecting Apple stocks could hit $400.

Apple stocks have surged an astounding 103% in the last year. With the company’s shares continuing to rise, analysts from investment firms Morgan Stanley and Nomura have adjusted their price targets for Apple.

Morgan Stanley has topped off its initial $296 per Apple share to $368. Nomura has also adjusted its projection and increased it to $280 per share. It was previously at $225 per share. However, the Japanese financial holding company warned that unreasonable expectations surrounding the iPhone 12 could “make the music stop” and put an end to Apple’s impressive run.

Nomura also claimed it will remain “neutral” on its outlook on Apple’s stocks. The company believes the “5G supercycle” that some investors are waiting for are already priced in the shares. This would account for the strange way the company’s shares acted last year.

Nomura is also expecting a $40-80 Bill of Materials (BoM) incremental cost to be a deterrent to the adoption of 5G phones. In a note, the company says there’s no indication the value chain would shoulder that cost.

Meanwhile, experts from Morgan Stanley projected that the Cupertino-based company will continue to lead the way based on the rising replacement cycles of Apple smartphones. There’s also the impending 5G product cycle to consider.

In a note, Morgan Stanley emphasized that the iPhone’s replacement cycle has run for almost four years now. However, 5G technology and Apple’s trade-in program could mean that the replacement cycle could start to slow down.

Apple stocks are currently trading at $317. However, many traders are feeling bullish about the company. Wedbush’s Daniel Ives has even predicted a $400 target price per share.

According to Ives, there’s a strong possibility that Apple could surpass Microsoft and become the first company to reach a $2 trillion valuation. He even claimed that this could happen in the next two years, with help from Apple’s services business and a new cycle of iPhones with 5G connectivity.

Other analysts are not so confident about Ives’ claims though. Despite Morgan Stanley and Nomura changing their projections, James Cordwell of Atlantic Equities believe that Apple stocks will remain at $275. He says that investors will be disappointed with 5G as its impact and benefits are already factored in the price of Apple shares.

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