Apple shares remain a bargain

“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


  1. Analysts are terrible at prediction and great at following. They advise to sell after the market sells off, and they advise to buy after it surges higher. It seems to me that an individual investor is better off doing the exact opposite.

    1. Hibben’s not the kind of analyst you are describing. He doesn’t work for an investment bank. He’s an amateur who publishes his analysis on seeking alpha.

      1. …which is why I don’t give much creedence to SA. Too many armchair analysts. There are plenty AAPL bashers there as well. You might get some good ideas here and there from the contributors but nothing to take to the bank.

      2. Hibben frequently makes use of EGG trajectories without correcting +- for BUN, and looks at AAPL YTD’s without considering BACN or SAMN coefficients that even 1st year business students would consider. thus I take everything he says with a few grains of salt.

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