“Apple stock closed Friday at $532.87, up 1.5% for the week. But the shares are down 4.4% on the year to date compared with the Dow, which is off by only 1.6%,” Richard Saintvilus writes for TheStreet. “Apple’s stock is dirt cheap. Not only are the shares still down 7.5% from their 52-week high, but even when you strip out Apple’s cash, these shares would still command a price tag north of $500.”
“Given the strength of the iPhone 5S and rumored iPhone 6, which is due out later this summer, Apple’s stock remains a sure bet to $650 and higher,” Saintvilus writes. “Assuming that China Mobile sales remain at the current pace, this should spur iPhone device sales by an additional 14 million to 16 million. Apple stock should respond by trading (at least) 18% to 22% higher in the next 12 months. This will place fair-value at around $650 by the beginning to 2015. And this doesn’t even include the highly anticipated iPhone 6, which is expected to be bigger and sport a larger screen.”
“There are those that have switched to Samsung phones due to their larger screens. So Apple is certain to win back those customers,” Saintvilus writes. “What’s more, as China Mobile’s 4G service increases throughout China, this will add incremental growth to Apple’s sales. The Street still has not made this correlation.”
Read more in the full article here.