“Carl Icahn still thinks Apple is ‘dramatically undervalued’ and upped his price target again on Monday,” Lauren Gensler reports for Forbes. “In an open letter to Apple CEO Tim Cook, billionaire activist investor Carl Icahn detailed why he thinks Apple is misunderstood and encouraged the tech giant to repurchase still more of its shares.”
“Icahn raised his price target to $240, up from the $216 he said Apple stock was worth just a few months ago and 86% higher than Apple’s closing price on Friday,” Gensler reports. “Icahn’s price target stems largely from his optimism that Apple is making an entrance into television and cars.”
“To arrive at the $240 per share he thinks Apple’s stock should be trading at, Icahn is forecasting earnings of $12 per share in fiscal 2016, which is significantly higher than the consensus on Wall Street,” Gensler reports. “Icahn also values Apple at 18 times earnings, higher than the market’s multiple of 10 times and more in line with the S&P 500′s multiple of 17 times.”
Read more in the full article here.
MacDailyNews Take: Theres’ no question that Apple is misunderstood by Wall Street in general.
Carl Icahn issues open letter to Apple CEO Tim Cook – May 18, 2015
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