“After months of declines in Apple’s stock, sentiment appears to be mending as investors focus on steady earnings expectations and bet that the expected launch of a new iPhone will add badly-needed fuel to sputtering sales,” Noel Randewich reports for Reuters.
“Apple shares have increased 5 percent in the past two weeks as Wall Street bets the company this month will launch a less expensive iPhone to boost sales in developing countries like China,” Randewich reports. “With U.S. consumers upgrading their smartphones less often, manufacturers have been relying on China for growth.”
“”‘Unless something big happens, (Apple) doesn’t deserve to trade at 20 to 25 times earnings anymore. It’s just too big,’ said David Meier, a portfolio manager at Motley Fool Funds. ‘But as a high-quality company, could it trade at 15 times earnings? Certainly,'” Randewich reports. “A target of 15 times its next 12 months’ expected earnings would put Apple at around $138.”
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MacDailyNews Note: Apple’s all-time high of $134.54 was set on April 28, 2015.