Analyst sees Apple shares hitting $1001

Mon, Apr 2, 2012


In his first research note covering Apple, Topeka Capital Markets analyst Brian White levied a $1001 price target on the company’s shares. And with Apple currently hovering in the $618 range, Apple shares will have to appreciate by 62% to reach the $1000 level. Incidentally, it’s curious, and somewhat comical, that White’s price target is one thousand AND one dollars instead of an even grand, but I digress.

Driving White’s bullish outlook on Apple is that the company, over the next year and a half, stands to make even further gains in the markets it already dominates, those being mobile phones and tablets. Further, White believes Apple will release an integrated TV that will further prop up profits to unprecedented levels.

“Driven by an ever expanding portfolio of innovative products, a growing integrated digital grid, unmatched aesthetics and a brand that is able to touch the soul of consumers of all backgrounds, Apple fever is spreading like a wildfire around the world and we see no end in sight to this trend,” White said.

Also impacting his rosy outlook on Apple is the opportunity presented by China, which has become an increasingly important contributor to Apple’s bottom line. You might remember that during an earnings conference call a few months back, Apple CEO Tim Cook said that the company had barely scratched the surface regarding the potential they see there.

All in all, White writes that Apple’s all-encompassing ecosystem provides it with an unmatched array of products and services, with iCloud being the latest addition to a strong stable of products that deliver user experiences competitors have been unable to match.

Thus far, shares of Apple have already risen about 45% since January. A 62% increase from current levels would mean that Apple shares, in just 16 months, would have risen well over 100%. It sounds lofty, to be sure, but with Apple’s P/E coming in at only 17.6 Or so, it’s really not all that outlandish, especially in light of Apple’s relatively small marketshare in the worldwide smartphone market.

via Apple Insider


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