“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.]