Munster: New Apple products could have ‘big impact’ on price multiple

“Piper Jaffray analyst Gene Munster shared his views on what investors can expect at Apple’s annual shareholder meeting that is being held in Cupertino today during a recent appearance on CNBC,” Nathanael Arnold reports for Wall St. Cheat Sheet. “Munster expected that the meeting would otherwise mostly consist of complaints from investors who are concerned about a perceived lack of innovation at Apple.”

“Munster also shared his perspective on the potential impact that Apple’s rumored new products will have on the company’s share price,” Arnold reports. “Although the Piper Jaffray analyst observed in a recent note to investors that new products alone won’t significantly add to Apple’s bottom line, he believes that excitement about a new product could boost Apple’s share price in the short term.”

“‘There’s two phases to the stock,’ Munster told CNBC,” Arnold reports. “‘The near term, the next six to twelve months is on the trade, which is what you’re talking about. Our opinion is that it’s hard to say how much they’re going to add. We think it will be about ten percent for two product categories. But probably the bigger impact of the stock is the multiple going up. They get the products in their hands and they get a little excited,’ said Munster.”

Read more in the full article here.

[Thanks to MacDailyNews Reader “David E.” for the heads up.]

12 Comments

  1. New ATV hardware – March/June
    MobilePayments – ios8 killer app
    New iPhone iNvincible – Sept
    New iPad with new sizes – Sept
    iWatch – Oct/Nov with ios8
    700 – December/January

    1. They just hired the team so watch for the iWatch in late 2015 with iOS 9. I think iOS8 will create the foundation for using the M CPU to support more sensor tracking than just motion which the iWatch will depend on.

      This is the year for ATV console with AppStore, iPhone6, iPad with fingerprint sensor, iOS with multi-tasking (otherwise the next Gen 64bit cpu would be a gimmick and apple does not do Gimmicky stuff) which hopefully will lead to having the iPad-Pro.

      1. Good points. I agree. Apple is not going to rush a watch out just to say me too. It’s not their style, never has been, never will be. I think they got something really special cooking with their new watch. I’m guessing some leading edge technologies along with current technologies used in a unique fashion.

        Just like the iPod, iPhone and the iPad superseded devices that already existed and were similar, it was Apple who took the kludgy crap that existed and reinvented them into something refined, intuitive and elegant. This is what Apple does.

        Companies that think being first to market with half baked low margin devices, are doomed to fail or wallow in mediocrity.

        When’s the last time you heard someone say, “I can’t wait to see what Samsung comes out with?” I know I’ve never someone say that. But that’s what people ask about Apple all the time.

  2. AAPL, in my opinion, is too big to be a true growth stock. I’m ok with that. New products will only add to an already enormous bottom line.

    What Apple is capable of is disruption. They have the ability to not only introduce new products but to seamlessly plug them into an ever-expanding ecosystem. Call it vertical integration, call it the Borg. Whatever you want to call it, the ongoing result is something analysts have great difficulty in understanding.

    At the end of the day, Steve Jobs’s DNA is deeply imbedded into the company he started in his folk’s garage. Cook, Ive, host of others are building out the franchise. Brilliance can be defined as the consistent application of the obvious. If so, no company does it better.

  3. Just like no one saw apple’s post iPod growth coming and one day woke up to Apple being the Sony of the 21st century, so too will the world of idiot wall st analists and tech know nothing writers, wake wake up to realize that Apple’ forthcoming growth will make the new spaceship one of a fleet that will follow.

    Apple has the floorplans and the roadmap to the future world leadership of technology and consumer services that not one other company other than it, is equipped and primed for. Software, hardware, design, service, excellence and quality.

    The world will wake up one day, not to far away and realize that Apple has outgrown the poor multiples that wall st holds them to and then the goons will cry like little babies that the were sandbagged.

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