Apple Inc. could turn advertising into its next $20 billion business as the company ramps up its offerings and clamps down on ad targeting by third parties.

That’s according to estimates from Evercore ISI analyst Amit Daryanani, who pegged Apple’s
AAPL,
+0.72%

advertising business as an “underappreciated” part of the company’s story and one with the potential for big growth over the coming years. The advertising business could reach $20 billion in revenue by 2025, he posits, up from perhaps $2 billion currently.

Advertising represents a high-margin revenue stream for Apple. By 2025, ad revenue could constitute about 17% of Apple’s services revenue and about 5% of total revenue, but 9% of earnings per share, by Daryanani’s math.

See also: Apple to make video upgrades key focus of next iPhone launch, says report.

Daryanani rates Apple’s stock outperform,…

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