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Apple could increase another 25% by adding cryptocurrency services to its Wallet app, says RBC | Currency News | Financial and business news

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an Apple RBC Capital Markets said on Monday that stocks could jump higher than current levels if the tech giant takes its first step in the cryptocurrency market.

Analyst Mitch Steves raised the iPhone manufacturer’s RBC price target to $ 171 from $ 154 for customers, which is a 25% increase from Apple’s closing level on Friday. The target is now the highest among Wall Street analysts. Steves also maintains a “superior” rating on stocks.

While most of the headlines surrounding future Apple offerings have been focused recently on a potential electric vehicle, RBC sees more near-term opportunities in the company’s modest Wallet app. Apple has expanded the app over the years, recently making its first foray into financial services with Apple Card in 2019.

RBC said Wallet is already contributing to Apple’s increasingly robust service business, but the expansion in the crypto sector could make it an even greater boon. Opening the Wallet app to buy and sell cryptocurrency could instantly establish Apple as a leader in the industry and boost revenue for its services, according to the team.

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“If the company decides to enter the cryptocurrency exchange business, we believe the company could immediately gain market share and disrupt the industry,” RBC said, adding that this could help the United States become a leader in the digital currency space within the ten to twenty years. Coming.

Apple was trading down roughly 0.6% as of 2:45 PM ET on Monday. Shares opened sharply lower before briefly turning positive and paring gains later in the day.

Getting into crypto is really a proven money maker. Field You get $ 1.6 billion quarterly through bitcoin trading revenue from nearly 30 million active users. Apple has an installed base of about 1.5 billion people, indicating that the company can generate up to $ 40 billion annually from a wallet-based cryptocurrency exchange, according to RBC.

The team added that the development costs for the billions of dollars in revenue streams would be minimal. Square’s entire R&D budget is under $ 1 billion.

Analysts added that Apple could increase its movement in the cryptocurrency industry by purchasing $ 1 billion in bitcoin for itself. They added that the move would attract more users to the wallet-based exchange and potentially raise Bitcoin prices.

Such a purchase had never been heard of before. Tesla On Monday, it announced that it had bought $ 1.5 billion of bitcoin, saying the token provides “more flexibility for greater diversification and increased returns for our cash.” The famous cryptocurrency It jumped over $ 44,000 for the first time ever Monday after news of Tesla’s purchase.

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