Apple stock is cheaper than Clorox, says Cowen’s Krish Sankar, who boosts his Apple price target to Street high. Currently, Apple’s stock price is hovering around $500, which is roughly 15% above the average price target among Wall Street analysts.
Sankar on Tuesday morning repeated his Outperform rating on Apple shares, while boosting his price target from $470 to $530, the highest on the Street.
He increased his target for the price/earnings ratio of Apple’s core business — Sankar includes iPhones and hardware in that calculation — to 25 times 2021 calendar year earnings, from 23 times. And for the Services segment, he is now using a target of 41 times earnings, up from 35 times.
That leads to a blended P/E multiple of 31 times his calendar 2021 estimate of $16.83 a share.
Sankar wrote in a research note that “valuation may appear stretched on an absolute basis, but not relative to peers.” He pointed out that the stock has a similar forward P/E to companies like Facebook, Alphabet, and Microsoft. And he noted that electronic-design automation companies, which make software for chip design, trade at higher multiples despite slower revenue growth and lower free-cash-flow yields. Apple’s valuation compares favorably with consumer staples companies, he said, pointing in particular to Clorox, with a similar P/E but projected revenue growth in the low single digits.
MacDailyNews Take: Apple stock is cheaper than Clorox and remains significantly undervalued, even with a world-leading $2.14 trillion market cap.
Dear Clorox stock holders:
You know Apple is making a car, right? :/
M
The success of Clorox pales by comparison.
‘Cheaper’ is relative I would think in relation to what proportion of the company you own with each stock share. Any company can have a stock split to make individual shares cost less. There are about 34x more AAPL shares than CLX outstanding at present so I would think AAPL is actually more ‘expensive’ in that sense than the huge majority of stocks out there.
Apple should be far cheaper than Chlorox!!!
Can Apple cure Covid?
You sound overly worried about the China Flu. Just like a good, malleable sheep.
China Flu will pass through everyone until herd immunity is reached, 10% will have symptoms, <.02% will die. All the government imposed oppression like masks and distancing is just an experiment by the elite to find the best way to herd sheep.
Oh, by the way: Study finds hydroxychloroquine reduces in-hospital COVID-19 mortality
The research, conducted on 3,451 patients treated in 33 hospitals throughout the Italian territory (list of participating centers attached), shows that the use of this drug reduces by 30% the risk of death in hospitalized patients affected by COVID-19.