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Analysts Look Toward $1000 Share Price, $1 Trillion Market Cap for Apple
Over the past two days, a couple of high-profile research analysts have issued reports predicting that Apple's stock will reach the $1000/share milestone within the next year or two, a move that would see that company's market capitalization push toward an unprecedented trillion-dollar market capitalization.
Yesterday, analyst Brian White issued his first research note on Apple in his new position with Topeka Capital Markets. White had previously worked at Ticonderoga Securities, which ceased operations earlier this year. In his initiation report for Topeka, White offers a 12-month price target of $1001 for Apple, citing the appeal of 4G LTE, booming growth in China, and an expected Apple television set as drivers for the company's growth.
We are initiating coverage of Apple with a Buy rating and a 12-month price target of $1,001.00. 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. As such, we believe the Apple story still has a long way to play out in the coming years and we expect the next 12-18 months to be particularly exciting for the Company on multiple fronts.White also points to Apple's dividend and share repurchase program, with growth of that program in the future, as an additional driver for investor interest in Apple's stock.
Meanwhile, Piper Jaffray analyst Gene Munster weighed in with his own report early today, and while his official 12-month price target for Apple moves from $718 to $910, he believes that the stock will roll on to reach $1000 in 2014.
While our 12-month price target is $910, we believe shares of AAPL can reach $1,000 beyond our one year price target window, specifically in 2014 when we believe investors will begin to factor in CY15 numbers. Even conservatively applying the 12x forward year EPS multiple (CY13) that Apple is currently trading at to our CY15 estimate of $80.18, we reach a $960 share price. Furthermore, we believe factoring in an Apple Television could add more than $4 in EPS (5%) by CY15, which could yield over a $1,000 share price (12 * ~$84).Munster estimates that half of the predicted $400 billion growth in Apple's market cap will come at the expense of its competitors, while the other half will come from new money entering the tech sector.
Given Apple's current share count of roughly 930 million, a $1000 price would see the company pushing toward a market capitalization of $1 trillion. As we noted last month, Microsoft set the standard for highest market capitalization for a publicly-traded company back in 1999 at $604 billion. Apple is roughly $20 billion short of that number as of today, but when adjusted for inflation, Microsoft's peak market cap would have corresponded to over $800 billion in today's dollars.
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38 months ago
Its only a matter of time before AppleNet becomes self-aware and our iDevices attack us and start WWIII.
38 months ago
A bubble is a bubble is a bubble ... ;)
("wise" investors sell if everyone else is buying - and remember that you'll almost never manage to sell a stock exactly at its peak, or buy it at its low point)
("wise" investors sell if everyone else is buying - and remember that you'll almost never manage to sell a stock exactly at its peak, or buy it at its low point)
38 months ago
And today, Microsoft is worth $250bn. Nobody could have possibly foreseen the loss of 75% of their market cap (based on inflation adjusted numbers) in the late-1990's, but surely enough...
Apple cannot simply keen on growing forever and ever. My predication is that there will be a big crash some time over the next few years. Probably 2015-16, especially if they reach $1000 per share by 2014.
There is no such thing as the perfect company, or the perfect stock. Investors need to realise this, because AAPL is looking pretty perfect at the moment and that's just going to fuel overconfidence.
Apple cannot simply keen on growing forever and ever. My predication is that there will be a big crash some time over the next few years. Probably 2015-16, especially if they reach $1000 per share by 2014.
There is no such thing as the perfect company, or the perfect stock. Investors need to realise this, because AAPL is looking pretty perfect at the moment and that's just going to fuel overconfidence.
38 months ago
This stock is going to be traded mainly by large firms soon as the average Joe won't be able to purchase stock and those prices.
38 months ago
Apple has solid earnings, but now it seems like the analysts are piling on and getting ahead of themselves. Most of their profits are from mobile phones. While it's a lucrative market, it also can turn on a dime. Look at RIM and Nokia.
I think it's a solid company but am not expecting it to go up another 60+% in the near term given its rise over the past few weeks.
FD: I'm long AAPL.
I think it's a solid company but am not expecting it to go up another 60+% in the near term given its rise over the past few weeks.
FD: I'm long AAPL.
38 months ago
I think that this report assumes Apple will continually unleash devices as successful as the iPhone/iPad. I think that'll be rather difficult. I also don't see Apple's TV's hitting a major market due to the much higher selling price point.
We'll see what they come up with...
They are forecasting this to happen in the next year or two. They arent predicting any other new devices besides for the usual yearly updates and the Apple TV. Im not surprised. I have never been happier with my apple products and there is still so much untapped potential. If they release a nice update for iphone 5, they are going to sell a crapload.
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I see no end for this stock surge.
Famous last words
38 months ago
Hate to be a downer here, but ...
Does anyone remember Iomega's stock rise and quick crash? A hot commodity can either fail because it hits saturation or something out of the blue takes its' place. In the case of Iomega the recordable CD killed them. I fear Apple's failure will be saturation with nothing new in the wings or a way to lower pricing on their current products to such a point new markets open up.
FYI - I have Apple gear and love it, I also had Iomega gear and now use HD's and recordable DVDs for backing up.
Does anyone remember Iomega's stock rise and quick crash? A hot commodity can either fail because it hits saturation or something out of the blue takes its' place. In the case of Iomega the recordable CD killed them. I fear Apple's failure will be saturation with nothing new in the wings or a way to lower pricing on their current products to such a point new markets open up.
FYI - I have Apple gear and love it, I also had Iomega gear and now use HD's and recordable DVDs for backing up.
38 months ago
"I got in at $535"
"I got in at $12"
Well, I say poop on all of you.
I didn't get in at all.
Sure, go ahead, rub it in...I'm a jerk. :o :p ;)
"I got in at $12"
Well, I say poop on all of you.
I didn't get in at all.
Sure, go ahead, rub it in...I'm a jerk. :o :p ;)
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