“By viewing Apple as a growth company and assigning a valuation accordingly, it is not difficult to justify an $1,111 price target (which would give Apple an approximately $1 trillion market capitalization),” Levine-Weinberg writes. “However, it is one thing to state that Apple is worth $1 trillion, and another to claim that the market will soon come to this conclusion.”
Levine-Weinberg writes, “Over the past few months, an increasing number of hedge fund managers and other prominent investors have made highly public bearish calls on Apple. While sell-side analysts overwhelmingly have “buy” ratings on Apple, the investment community as a whole is not about to accord Apple a 20X earnings multiple. As a result, the stock price is likely to appreciate in proportion to earnings growth.”
Read more in the full article here.
[Thanks to MacDailyNews Reader “Joe Architect” for the heads up.]