“Expecting big things from the anticipated debuts of new iPhones and a so-called ‘iWatch’ this fall, Evercore Partners on Wednesday increased its price target on shares of Apple to $115 — one of the highest current forecasts on Wall Street,” Neil Hughes reports for AppleInsider.
“Analyst Rob Cihra sees Apple stock reaching a new all-time high, blowing past its previous record of just over $100 per share post-split,’ Hughes reports. “‘We see Apple creating its own growth through uniquely innovative hardware+software with integrated services vs. a sea of otherwise commodity devices,’ Cihra wrote.”
Hughes reports, “Cihra joins a number of analysts that have increased their price targets for AAPL in recent weeks, ahead of the company’s upcoming July 22 June quarter earnings report. Other increases include Needham & Company ($97), Cowen & Company ($102), RBC Capital Markets ($100), and J.P. Morgan ($108).”
Read more in the full article here.
[Thanks to MacDailyNews Reader “Fred Mertz” for the heads up.]
Strangely (figuratively and literally) silent throughout recent days is loony Colin Gillis who still, apparently, has a $565 price target on AAPL. Heck, he hasn’t even been on CNBC every day yawning over yet another boring Apple product or outlook!
All well and good. But keep in mind that analyst estimates are very short-term focused. I prefer to follow the advice of Warren Buffett, who has told investors repeatedly to think long term about any company in which they want to invest.
Buffett advises investors to invest only in companies that you believe will grow considerably over a 10 year period at a minimum. It’s important to remember you’re not buying pieces of paper, but instead are becoming a partial owner of the company. Instead of trying to time the market (a loser’s game), look to invest in companies that will grow their earnings and even more important, their pile of cash significantly over time. In e long run, that is what determines a stock’s true value and price.
What we have seen in the past year with Apple’s stock valuation has more to do with short-term sentiment than true valuation. Now the pendulum is swinging positively for Apple in terms of Wall Street’s sentiment, and the pundits are again becoming fair-weather friends.
There’s a lesson here. Instead of the day-to-day notice and hysteria hyped by CNBC, Business Insider and yes, even MDN, focus instead on the long-term. That means tuning out looking at prices and charts, and going outside instead. You will see Tim Cook go from a goat to a genius per the pundits in e next few months. But truth be told, little has changed. It’s all hype, sentiment and short-term perception. The reality is however that Apple continues to innovate, grow its earnings and cash and move forward.
For the patient investor who keeps this in mind, 10 years from now, especially if you reinvest and let your Apple dividends compound, you will be smiling.
For better insights, look at this article on the Motley Fool website about how to turn $10 into $4 million. It’s an instructive for anyone looking to invest in great companies like Apple with excellent t long-term prospects. Skip the day-to-day. Think long term. THAT. Is how you win, and how you can beat Wall Street. Here’s the link:
http://www.fool.com/ecap/the_motley_fool/homerun-warren-buffett-tells-you-how-to-turn-40-2/?paid=7386&psource=esadsq7410860001&waid=7387&wsource=esadsqwdg0860001
My apologies for the typos in my previous posting. I attribute them to fat-finger errors on my iPad and additional errors baked-in to Auto-correct. Ugh.
Just goes to show how right Apple were to split the stock again. Could you imagine anyone raising the target of the old value to $805?