After peaking at just above $700 last September, Apple's (NASDAQ: AAPL ) stock hasn't come close to those levels since. Today, shares still trade below $600. But one analyst believes that, within 12 months, Apple stock can hit $700 once again. With a price target of $700, Evercore analyst Rob Cihra thinks shares could gain about 25% from today's levels.
Why does Cihra think Apple is undervalued? In the video below, Fool contributor Daniel Sparks breaks down Cihra's arguments for a $700 price tag for Apple shares into three points.
- Cihra sees momentum from Apple's refreshed iPhone and iPad line-up.
- He feels that Apple's current product line will help to stabilize Apple's gross profit margin.
- He is confident in Apple's vertical integration and its ecosystem of integrated hardware and services.
To find out what Daniel thinks of Cihra's arguments, check out the video below.
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