Could Apple Hit $700 Per Share in 2014?

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.

  1. Cihra sees momentum from Apple's refreshed iPhone and iPad line-up.
  2. He feels that Apple's current product line will help to stabilize Apple's gross profit margin.
  3. 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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Read/Post Comments (7) | Recommend This Article (4)

Comments from our Foolish Readers

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  • Report this Comment On December 16, 2013, at 9:21 PM, amh7209 wrote:

    I tend to agree with your assessment. And your comments do not even take into consideration any significant product innovations or "new categories" which could emerge. I think the slow growth thesis is a good one and a desirable one. A steady stream of "hitting singles" going forward hopefully bodes for rational price appreciation in Apple shares.

  • Report this Comment On December 16, 2013, at 9:22 PM, PedroHMG wrote:

    It's a forgone conclusion with any one with a brain that Apple will hit $700 a share. That is not the question. The question is "How high can the stock go"?

  • Report this Comment On December 16, 2013, at 10:11 PM, TMFDanielSparks wrote:

    @amh7209

    Agreed. Thanks for the comment.

    @PedroHMG

    Keep in mind that the $700 price target is within one year -- not at any point in time. 25% appreciation certainly is nice from today's share price.

  • Report this Comment On December 17, 2013, at 1:27 AM, Power2byrbst wrote:

    Apple has always had a Niche Market. The way they inspire employees to creative innovative products, insure virus free environments, and the fact that they are a home grown US Company well what's not to like. I've owned Apple stock since the the early 80's. Impressive always their ratio's have been. Who doesn't like a company which always has liquid cash 2 x or more their

    liabilities- Golden. What I'd prefer they do with a few of those billions instead of paying me the stockholder now, is invest in R & D heavy, and keep up with the Excellent Market/Ad Campaigns. Apple - The Power To Be Your Best!

  • Report this Comment On December 17, 2013, at 6:18 AM, Selmarkvi wrote:

    All I can say is walk in to a Apple store and watch for 10 Min.You will leave shaking your head like I did the other day walking out with 2 Mac Book Pros for my kids.I guess all I can say is thank you Steve Job's for the company you started and selling me on what you were doing with music and changing how we buy music. I bought bought Apple stock back in 2005 at $35 a share.Lets just say my Apple store visit puts a big smile on my face.One computer for my daughter became a college grad on Sunday and the other computer for my son who will start college in 2014.Thank you Apple for taking care of college for my kids and a few other things around the house with my dividend checks. What a gift Apple has given my family.

  • Report this Comment On December 17, 2013, at 7:41 AM, Mathman6577 wrote:

    I'm really looking for Apple to keep pumping up its dividend and buying back shares.

  • Report this Comment On December 17, 2013, at 8:40 AM, kickbishopbrenna wrote:

    I don't buy into the apple money-go round..I have an ipad, but only because it was a gift.yes theyre good, but like everyone else, theyre also finite, and I just dont see continued gain. I've several positions in aapl, but I don't feel as sure about them as I do msft, goog or intc..they always seem to "over-react" to the slightest downturn.I do believe they will hold their value quite well, and hover between 500 and 700 over the next 5 years, but no, I don't see an all-conquering new range from the current set-up in R and D. to me theyre now a slow-growing, earnings good, blue chip, and threats to margin as well as to innovations are more frequent. I own them and will continue to, but always limited, and always a bit nervous. much like the economy, they are in a new slow-growth phase.

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