Apple Climbing Back to All-Time Highs? One Analyst Thinks So.

Over a year after peaking at $705, Apple  (NASDAQ: AAPL  ) might be able to reclaim its former glory yet. At least that's what Evercore Partners thinks, which has raised its price target to $700 citing product refreshes that promise to reinvigorate momentum. On top of that, Evercore sees gross margins stabilizing. Apple's profitability suffered over the past year as Apple took greater warranty and depreciation expenses, and has also begun deferring a greater portion of revenue because of free software. That might mean gross margin has some upside to it.

The Street-high still belongs to Cantor Fitzgerald analyst Brian White, who has assigned a $777 value on Apple. His "Apple Barometer" suggests that supply-chain activity remains high, which bodes well for Apple. Even if Apple were to fetch a market multiple, shares would be worth more than $700. Investor sentiment would have to return first, though, which is easier said than done.

In this segment of Tech Teardown, Erin Kennedy discusses the growing positive sentiment for Apple stock with Evan Niu, CFA, our tech and telecom bureau chief.

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  • Report this Comment On December 15, 2013, at 10:44 PM, iphonerulez wrote:

    Apple ever getting back up where it was before is unlikely to happen with Tim Cook at the helm. He may be some motivational speaker for Gay Rights but when it comes to Apple, he can't motivate Wall Street investors worth a damn.

  • Report this Comment On December 16, 2013, at 3:02 AM, DanManners wrote:

    Evan, you are terrific. You handle yourself very well and are very objective too.

    If Brian's estimate of Apples Price target comes out at 500, does he go with 555 or 444? Both are a good ways away. This exercise in foolhardiness is why I can't take him and also Gene Munster seriously.

    Not to mention, Brian is way off all the time. His 1111 price target was over 400 points off. Yes in time it could go there but he had a 1 year price target and we will be lucky to see Apple climb to 575 this year. The high for Apple has been seen for this year and unfortunately is headed much lower. 440 is my estimate of where we are headed. News of slow sales of iPhones at China Mobile are surfacing and the possibility of slow iPhone and iPad sales as inventories are quite high now. Cook had warned that the iPad Mini would be constrained supply wise. But we are not seeing that. I believe they overestimated the sales numbers and we could be facing Apple not beating once again.

    When Apple reports bad earnings, the stock is going right under 500 and down to 470. As bad news abounds with the Galaxy 5 introduction and no new products or further upgrades until next September 2014, the stock will be diving and we could break 400 once again.

    Tim Cook is doing well with upgrades but the stock price welfare has eluded this maestro of the supply chains. I believe it is time for Cook to step down. As I was proud that a gay man was now the head of the greatest company in the US, i am critical of his abilities. I believe he needs to pass the reigns now. No big Phone is the main reason I can;t have any faith in his leadership. It is absurd.

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