“Today I am updating my 12-month Apple price target to $950 per share. This price target represents an expected share price appreciation of 52.8% from Apple’s closing price of $621.70 on August 10th, 2012,” Robert Paul Leitao, the founder of the Braeburn Group and author of the Posts At Eventide, writes for Seeking Alpha. “I expect share price appreciation, on average, to trail behind the rate of earnings per share growth over the next 12 months as Apple’s massive market cap influences the share price performance and as the company’s price-earnings multiple continues to contract.”
“Over the next twelve months, I anticipate reported revenue growth of roughly 50%, corresponding earnings per share growth of about 60% and the aforementioned 52.8% rise in the share price value,” Leitao writes. “I anticipate 12 months from today a price-earnings multiple of 14 times trailing 12-month earnings, suggesting a slight compression in the multiple from today’s valuation of 14.61 times trailing 12-month earnings of $42.55 per share. For the four fiscal quarters ending June 29, 2013, I expect trailing 12-month earnings of about $68 per share.”
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