Gene Munster is a Wall Street analyst that’s known for being pretty bullish on Apple stock, but even for him this new target price of $607 within the next year seems a bit outlandish.
Speaking in a note to investors for the upcoming year, Gene Munster tried to defend his sky-high valuation of the company by saying “I’m expecting shares to be driven by new product roll outs.” He went on to add, “In 2012 there will be new hardware on iPads and iPhones and we believe a new Apple TV is coming late in the year.” He also addressed Apple’s ever growing war chest of money that he estimates will hit $120 billion in the next year. ”By next year, Apple will have $120 in cash and they’ll have to do something. I don’t think they’ll buy back but I do think they’ll issue a one time dividend.”
While none of us at TechnoBuffalo are stock experts, we do know technology, and seeing as Apple shares are trading at around $398 right now, the $607 target in the next year seems a bit far-fetched to us. Unless they do something really radical, investors will see new iterations of the iPad and iPhone as exactly what they are: New iterations. As for the Apple TV, if it’s even real, it’s going to have a tough battle ahead of it as the television marketplace is a notoriously rough business to break into. Sure it’ll have the Apple logo on it, but when it’s sitting next to a TV of the same dimensions for potentially half the price, you’re average consumer is probably not going to care all that much. TVs aren’t tablets or phones in the mind of the consumer, and all they tend to care about is the screen size as opposed to how many features it has.
It seems likely that Apple will have another good year, $607 just seems a bit outlandish.
What do you think? Could Apple share prices hit $607 in the next year?