“I believe that Apple’s valuation is very attractive and that shares could benefit as the company ramps recently released products and introduces new products and services next year,” Masam Abbas writes for The Motley Fool. “Over the long term, I believe that Apple could return much more cash to shareholders through buybacks and dividends, building on recent initiatives. I believe that there is also room for more product platforms that include solutions for live television and lower-end smart phones.”

“Apple has prospects for high organic growth, with open-ended potential to gain share in phones, tablets, and Macs. I view Apple’s upside scenario at $910 based on about a multiple of 15x and a FY14 EPS estimate of $60.66,” Abbas writes. “I believe the biggest issues facing Apple include the risk of losing share to lower-end products and the risk of having to cut prices for key products like iPhones and iPads. I view Apple’s downside scenario at $450 based on a multiple of 7x and FY14 EPS estimate of $60.66.”

Abbas writes, “The price target of $800 is based on a forward multiple of 13x and FY14 EPS estimate of $60.66. I believe that Apple is relatively inexpensive on a P/E basis, especially given its cash position. Currently, Apple is trading at a forward multiple of 9x, well below the 5-year average of 16.7x.”

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