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With Canaccord’s move, five Wall Street analysts now have target prices for Apple that put its market value above $1 trillion. Drexel Hamilton’s Brian White is still the most bullish among Apple analysts tracked by Thomson Reuters with a target price of $208.

Apple shares have climbed almost 50 percent this year on expectations for the iPhone X, which comes 10 years after the original iPhone was released. Even with those gains and the record valuation, Apple still trades at just 19 times earnings. That’s a discount to Google parent Alphabet Inc., which trades at 31 times earnings, Netflix Inc, which trades at 200 times earnings, and Amazon.com Inc.’s 277 price-to-earnings multiple.

“It’s selling at less than the market multiple,” Hank Smith, chief investment officer at Haverford Trust, which owns Apple shares, said in a Bloomberg Television interview. He said that unlike those other companies, Apple has to convince consumers to buy a new phone annually. “They have to sell millions of phones each year, so there’s always a chance those sales can come in late.”

Technology companies’ ability to build loyalty for their products and services, and consistently attract returning customers, has seen them come to dominate American equity indexes: Apple, Alphabet, Microsoft Corp., Amazon and Facebook Inc. are the five most highly capitalized stocks in the U.S. It was only in May that Apple became the first American company to cross the $800 billion threshold. Analysts expect Apple shares to rise by another 11 percent over the next 12 months.

While Apple generates about two thirds of its sales from the iPhone, Chief Executive Officer Tim Cook has over the past two years prioritized growth from services, which include Apple Music and iCloud. Not only do services generate more profitable revenue, they also tie consumers more tightly to Apple’s lineup of hardware products, making it harder to trade in an iPhone or iPad for a competing device from Samsung Electronics Co. Ltd., for instance.

With files from Reuters

Bloomberg.com