“After Brian White with Topeka Securities yesterday set a $1,001 price target on the stock, Piper Jaffray’s Gene Munster this morning raised his price target from $718 to $910, writing that it’s possible the stock could go to $1,000 or more a share, with upside from an television set, at some point,” Tiernan Ray reports for Barron’s.
“The $910 price target is a 12-month target, as is the case with most analyst targets. But, writes Munster, ‘We believe shares of AAPL will reach $1,000 in CY14, which would imply a roughly 1 trillion dollar market cap, the first in history,'” Ray reports. “Apple had 941.6 million shares outstanding at the end of the December fiscal Q1.”
Ray reports, “Munster’s target is based on a 14 times P/E multiple of his calendar 2014 EPS estimate of $65.04. That’s not including Apple’s projected cash per share at that point. (Munster does not offer an estimate.) ‘While some investors believe the biggest issue for AAPL to get to $1,000 is the market cap along with excessive investor exuberance, which we address in this note, we believe the real story is earnings growth,’ he adds. Irrational exuberance is ‘not a problem’ for the stock, writes Munster, because it’s cheap.'”
Read more in the full article here.
MacDailyNews Note: In pre-market trading, Apple (AAPL) is up $9.89, or 1.60%, to $628.52, a new all-time high.
[Thanks to MacDailyNews Reader “Dominick P.” for the heads up.]
To the Moon Apple!!!
Munster wants to be on TV.
I hate to admit this, but I’m starting to get excited and nervous at the same time. These analysts are getting some sort of herd mentality. Every couple of weeks, they continue raising target prices and I’m worried they’re just getting carried away in some fevered state.
Yeah, I prefer it when they underestimate the earnings, not overestimate them.
So some guy no one ever heard of raised Apple to 1,000 and the stock just took off. Maybe he should have said 2,000 ?
Piper Jaffray’s Gene Munster has been following Apple for a long time, and we’ve all heard of him (if you’ve been following AAPL).
For a long time we was just about the only analyst who understood Apple, and was able to accurately predicted the huge revenue boost caused by the iPhone.
If capital gains tax goes back to 20% or 30% on Jan 1, everybody will be selling AAPL in December.
Or money will flow toward high yield stocks. Why pay 20%-30% on less?
That awesome. I really need an television set.
Chrissy, your still with us! We miss you.
I’m always here. Watching.
MDN, I remember IIRC that an analyst ( Coleman I think ) said that AAPL would reach one trillion in 2012, back in early 2008. Everybody said he’s nuts. Guys like AFIB, remember that guy, said no way with a recession looming. Funny how we don’t hear from him anymore!
It now appears that he was off by just a year or so. That in spite of the Great Recession. WOW.