...$ 1001 in a year...? Oh well, we've been here before. These estimates are ALWAYS too low. Actually since 2005. Told ya... ;)
Apple Shares Boosted By Brokerage Calls
SAN FRANCISCO (Dow Jones)--Apple Inc. (AAPL) got a boost Tuesday from a trio of bullish broker notes--one of which predicted that the high-flying stock could hit the $1,000 mark within the next couple of years.
Analysts for Piper Jaffray and J.P. Morgan raised their price targets on Apple before Tuesday's opening bell. Both firms already rate the stock as a buy. Another broker--Auriga USA--initiated the stock at a buy rating.
Shares of Apple were up nearly 1.7% to $628.88 in morning trades; the stock is up more than 55% since the first of the year.
"We believe shares of Apple will reach $1,000 in [calendar year] 2014, which would imply a roughly $1 trillion dollar market cap, the first in history," Piper analyst Gene Munster wrote in a note to clients.
Munster lifted his formal 12-month price target on the shares to $910 from $718 -- making his the highest price target among brokers covering the stock, according to data from Thomson Reuters. He said the new target is based on the same projected multiple used in his 2013 forecasts, rolled forward into the next year.
Apple's current market cap is about $585.5 billion. Munster said the market-cap expansion to his projected $1 trillion will come from a couple of sources. He believes the iPhone will remain Apple's key earnings driver.
"The simple answer," he wrote, "is that we believe half will come from growth in dollars invested in tech and half from the continued market-cap shift from [Apple's] major competitors to Apple."
Mark Moskowitz of J.P. Morgan raised his price target on Apple to $715 from $625, citing iPhone and iPad sales as "key drivers" of the company's results.
"Our research indicates that the iPhone and iPad shipment activity in the supply chain implies major upside potential to our previous estimates," he wrote, adding: "The magnitude of the revisions, if accurate, stands to drive increased investor sponsorship of the stock in the near to midterm, in our view."
Apple will report results from its second fiscal quarter, which ended March 31 on April 24, after the closing bell.
In his initiation note to clients, Auriga analyst Kevin Dede set a $700 price target on Apple's shares. He sees the company's family of devices as part of a strong ecosystem that attracts software developers to a degree that competitors "cannot equally match" across its platforms.
"The sheer scope of Apple's devices in the end market and the uniformity and simplicity of design entices software developers, which scales applications and in turn draws even more customers," Dede wrote. "We don't see the trend being upset at this point, as broad expectations now call for the introduction of a large, flat-panel Apple TV to complement the other media access and creation devices it already offers."