“Since the earnings call on May 1, Apple is up over 12% and is very close to its all-time high. Analyst coverage has turned a little more bullish, with an average price target of $195,” Mark Hibben writes for Seeking Alpha. “Despite the price target, it’s only natural to wonder how much upside is left.”
“I came away from the earnings report convinced that the answer is “a lot,” but I needed to revise my investment case for Apple,” Hibben writes. “”
“The EBITDA profile reflects my expectation that Apple’s margins will not decline very much over the five-year period. The resultant share fair value is $239.89. This gives an upside of about 29% compared to the current share price of about $186,” Hibben writes. “Do I think that the DCF fair value represents the limit of Apple’s growth and upside? I really don’t. I regard it as effectively the lower limit, a floor to growth that investors can have high confidence in.”
Read more in the full article here.
MacDailyNews Take: Yup.
As always, AAPL remains horribly undervalued. — MacDailyNews, May 23, 2018