Analyst: Apple stock is cheaper than Clorox; boosts price target to Street high

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.

Analyst: Apple stock is cheaper than Clorox; boosts price target to Street high. Image: Apple Fifth Avenue
Apple Fifth Avenue

Eric J. Savitz for Barron’ss:

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.


  1. ‘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.

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