Evercore Raises Apple Target to $160 on Prospects for Apple Car

(Bloomberg) -- Apple Inc. could disrupt the automotive industry with an Apple Car much as it did the cell-phone industry with the iPhone, according to Evercore ISI analyst Amit Daryanani.

“IPhone was a computer in your pocket, Car will be a computer on wheels,” he said in a research note published Jan. 24.

Daryanani sees “increased probability” that Apple could introduce an autonomous electric vehicle in the next five years and make money from providing passengers with an array of services. He estimated a car could add $36 billion to Apple’s sales.

Apple reported revenue totaling $274.5 billion in fiscal year 2020. The company will release its first-quarter results on January 27.

Daryanani raised his target price for Apple stock to $160 a share; it traded up 3% to $143.18 at 1:12 p.m. in New York.

Development of an Apple Car is still in the early stages and is at least half a decade away, Bloomberg News reported earlier this month. The company also is investigating building its self-driving-car system for a third-party partner rather than an Apple vehicle, according to people with knowledge of the efforts.