Jim Cramer ups Apple price target to $300

Apple Store“Jim Cramer told the viewers of his ‘Mad Money’ TV show Tuesday [that] it may seem counterintuitive to recommend Apple (AAPL Quote) after the stock had a monster $10 move today, but this is just the beginning,” Scott Rutt reports for TheStreet.com.

“With Apple currently only representing 3% of cell phones and 4% of computers worldwide, Cramer said this is only the beginning of a huge move for the company. Cramer said he expects to see the iPhone dominate the cell phone market, just as the iPod did with portable MP3 players,” Rutt reports. “Apple currently commands a 70% market share in the portable music market.”

“Given the huge potential at Apple, Cramer said he’s raising his price target from $264 a share to $300 a share,” Rutt reports.

“He said investors should be willing to pay one times the growth rate for a high quality growth company like Apple,” Rutt reports. “That translates to 30 times Apple’s estimated earnings of $13 a share, or $390 a share. Cramer said since everyone would think he’s nuts to suggest $390 a share, he’s using a conservative price target of just $300 a share.”

Full article here.

32 Comments

  1. On Friday, he said that Apple would disappoint on earnings and that everyone should plan to get in on the downturn on Tuesday morning. Uh-huh. So I guess Jim bought on Friday and sold to all those same suckers/listeners on Tuesday!

    But he is basically correct on the price target over, say 12-15 months.

  2. More proof that MDN will post anything pro-Apple without comment regardless of source. How many times do we have to remind you Cramer has zero cred?? If he says $300, I think it must be time to sell!!

  3. It’s impossible for Apple to dominate the cell phone industry the way they do with mp3 players. He knows nothing about the phone market yet feels he can dish advice about it, therefore he has no credibility with me.

    Apple doesn’t want to take over cell phones, they need a sizeable share of the market to grow their profits and compensate for the inevitable erosion of iPod sales over the next decade.

    In a market with 1 billion sales a year, they could do that comfortably with 6-10% of the global market, which is the most they could ask for, IMO. Sure there may be bigger players but as with computers (and cell phones today for that matter), Apple will be soaking up the profits at the high end.

  4. “What kind of analyst bases his forecast on what people will think of it??”

    He is not an analyst, he is a trader. Traders do have to take into account what people think, as short term stock moves and momentum are based more on trader sentiment than on business fundamentals.

  5. Jim Cramer is a douche bag and a documented market manipulator (don’t you watch Jon Stewart?). He’ll spread negative rumors to short-sell a stock and talk up stuff he owns to take a quick profit. He is what’s wrong with the financial sector. Can we not give him even more attention please?

  6. @Ottawa Mark
    “More proof that MDN will post anything pro-Apple without comment regardless of source. How many times do we have to remind you Cramer has zero cred?? If he says $300, I think it must be time to sell!!”

    No one ever needed proof of this. They post it and people can make up their own minds. And even though Cramer might have lost some credibility over the last year, if you listen to his rationale, you’ll see that it has a lot of merit. Apple has a lot of room for growth.

    But go ahead and dismiss that notion just because you don’t like Cramer. The rest of us will just continue to ride this stock higher.

Reader Feedback

This site uses Akismet to reduce spam. Learn how your comment data is processed.