Another Analyst Goes Uber-Bullish on Apple

Here we go again. Wall Street analysts have been busy over the past several months ratcheting up opinions on Apple (Nasdaq: AAPL  ) , which played no small part in the record quarter that the tech sector just put up.

It may seem like forever ago that Apple shares traded in the ballpark of $400, but it was actually just three short months ago. Shares closed out last year at $405 and have promptly risen 48% over the past quarter, largely driven by the monster quarter that Cupertino reported in January.

AAPL Chart

AAPL data by YCharts

How high can shares go? Morgan Stanley's Katy Huberty has a bull case price target of $960. Ironfire Capital's Eric Jackson says $1,650 by 2015 is a distinct possibility. We can now add another lofty price target to our list.

Topeka Capital Markets analyst Brian White, who has been covering Apple since his days at Ticonderoga Securities before the company ceased operations in January, has picked up coverage on the Mac maker at his new employer. White is starting shares with a Buy rating and a $1,001 price target (not $1,000 or $1,002, mind you), which would yield a market cap of about $930 billion.

That target is a healthy head above the $666 price target he had assigned to Apple while at Ticonderoga. White notes that Apple is gaining momentum "like a wildfire around the world" and sees "no end in sight to this trend."

Just like Huberty, White believes that Apple will move the iPhone to 4G LTE connectivity this year following in the new iPad's footsteps, which should lead to healthy upgrade activity. He's also banking on China to be a major growth catalyst, as Apple just recently added China Telecom to its stable alongside China Unicom.

China Mobile (NYSE: CHL  ) is still the largest carrier, and White thinks it will join the iPhone party within the next year. The carrier boasts a 66% market share, making it incredibly important to Apple's China growth story.

White is also in the camp that expects a full-sized Apple TV set in the pipeline as well. He's modeling for more than $160 billion revenue and almost $45 in earnings per share for this fiscal year.

This really isn't anything we haven't already heard. While these growth catalysts aren't exactly new notions, they signify that analysts' bullishness is intensifying.

While a cheery consensus can sometimes be frightening, Apple's future still looks awfully bright.

Who can blame them, after the iPhone has ushered in the mobile revolution? Get this report on just how big the revolution is and one way to play it. It's totally free.

Fool contributor Evan Niu owns shares of Apple, but he holds no other position in any company mentioned. Check out his holdings and a short bio. The Motley Fool owns shares of Apple. Motley Fool newsletter services have recommended buying shares of China Mobile and Apple and creating a bull call spread position in Apple. The Motley Fool has a disclosure policy. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. Try any of our Foolish newsletter services free for 30 days.


Read/Post Comments (6) | Recommend This Article (9)

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Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

  • Report this Comment On April 02, 2012, at 11:59 PM, ConstableOdo wrote:

    White lines. That has to be at the root of the outrageous estimate by Brian White. Some of these analysts are just setting up Apple and shareholders for a fall with this kind of talk.

  • Report this Comment On April 03, 2012, at 1:34 AM, jdwelch62 wrote:

    "Be fearful when others are greedy, and greedy when others are fearful." - Warren Buffet

    :-)

  • Report this Comment On April 03, 2012, at 5:23 AM, adamj980 wrote:

    well this guy did call it to 600 something when it was 390, so maybe he ain't crazy. 1001 with current earnings and growth will still put it at healthy PE compared to competitors and the tech industry in general. I mean people pay 144 times earnings for amazon!

  • Report this Comment On April 03, 2012, at 11:12 AM, CoyoteMoney wrote:

    2015 is another midterm election into the future. Europe may or may not still be in recession. China may be be growing or perhaps not.

    When in doubt, toss the uber-bulls over the side with the uber-bears. Then read the rest and see who can match up solid math with solid arguments.

  • Report this Comment On April 05, 2012, at 3:58 AM, mesmd wrote:

    Apple will continue to upgrade it's devices with user needed nuances. They will also continue to innovate with devices made for other consumer needs like Apple TV, automobile and home. This will at least keep their world sales and production continuing at this incredible rate while producing the best consumer devices in each field. Their competition will be trying there best to copy and infringe, as always. I think with this belief, Apple stock may go to 900-$1000 share price.

  • Report this Comment On April 08, 2012, at 1:52 AM, 1984macman wrote:

    The question is no longer whether Apple will clear $1000/share; the question now is "how soon"? My guess; when EPS hits $60. That would equate to a P/E ratio of 16.66. And when will EPS hit $60? Sometime early next year.

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