3 Reasons Why Gene Munster Says Apple Will Be A Top Performer In 2021

Notable tech expert and venture capitalist Gene Munster was a guest on Benzinga's PreMarketPrep on Wednesday and offered three reasons why Apple Inc. AAPL will be a top-performing FAANG stock in 2021.

Digital Transformations: Apple boasts three key catalysts that will help drive the stock higher next year, Munster said.

First, the acceleration of the digital transformation and ongoing working and learning from home will help support iPad and Mac devices that account for around 25% of total sales.

Wall Street analysts are expecting iPad and Mac sales to grow by around 10% in 2021, yet Apple managed to grow sales more recently at around 30%.

5G Excitement: The second catalyst relates to growing enthusiasm around 5G technology and devices, Munster said.

While this is more of a back-half-of-2021 story, he said it will mark the very beginning of a multiyear iPhone upgrade cycle.

As Apple performs as expected in 2021, it will justify even higher expectations for 2022, Munster said.

Specifically, Wall Street is modeling 15% revenue growth in 2021 and 5% the year after.

"We are expecting throughout 2021 [that] estimates for 2022 move higher," he said.

Related Link: Why Apple Could Emerge As Tesla's 'First True Competitor'

Higher Valuation: Apple's stock valuation could be revised higher as the company continues to expand its subscription offering to include hardware devices other than iPhone, Munster said. Ultimately, Apple could offer customers a giant bundle where they pay once a month for all of its hardware and software products and services.

The valuation could also move higher if "investors start to get more wind" of Apple's plans in developing a car, Munster said.

Watch to the full interview with Gene Munster in the clip below, or listen to the podcast here.

PreMarket Prep is a daily trading show hosted by prop trader Dennis Dick and former floor trader Joel Elconin. You can watch PreMarket Prep live every day from 8-9 a.m. ET Benzinga's YouTube channel, and the podcast is on Spotify, iTunes, Google Play, Soundcloud, Stitcher and Tunein.

Gene Munster of Loup Ventures, left, with PreMarket Prep co-host Joel Elconin. Benzinga file photo.