Apple Watch
Apple CEO Tim Cook introduces the Apple Watch during an Apple eventReuters

Talks of Apple Inc. becoming a $1 trillion company surfaced as Cantor Fitzgerald, a leading financial services firm, predicts the company's market capitalization to reach the dream figure on the back of its new product launch and growing presence in the Chinese market.

Cantor Fitzgerald analyst Brian White expects the company's share price to hit to $180 over a 12-month horizon, taking its valuations to over $1.05 trillion. The new price target for Apple – an increase of over 40 percent from the current price – given by Cantor is well above the forecasts of its peers.

The iPhone-maker's current stock price valuation of $127 puts the valuation of the company at $744 billion.

White's bullish outlook on Apple is based on the company's launch of smartwatch –a new product in five years – and an increasing presence in China through its iPhone series. White expects the sales in Apple's smartwatch segment to reach 20.6 million units in a year. Cantor also remains optimistic about Apple foraying into new lines of business such as electric cars.

The company is better positioned to take advantage of expansion of 4G services in China and its growing partnership with China Mobile, White added.

White said Apple continues to show commitment to its shareholders with stock buybacks. Cantor Fitzgerald expects Apple to return more cash to shareholders in April. White maintains his "Buy" rating for Apple stock. He has previously predicted that Apple may see sales of 25 million units of Apple Watches in 2016.

Meanwhile, analysts at Morgan Stanley believe the Apple stock deserves a higher multiple because of the company's television service in the future. The Wall Street Journal reports that Apple is planning to release a TV service with 25 channels later in 2015. Morgan Stanley believes Apple should be seen as a "platform" company with a stock worthy of a higher multiple.