Thursday, March 15, 2012

ITZ Raises Apple Price Target To $750

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Apple hit another centennial mark today...the $600 mark, before selling off on  news that Deutsche Bank had removed Apple from its “Shorter-term Opportunities' list.
“We are simply taking profits,” the note says, which was released at 12:43 p.m. Eastern Time. “We remain optimistic on Apple’s medium and long-term fundamentals.”

ITZ raised the 2012 price objective to $625 back on January 27th, with a FY12 forecast of $45 per diluted share and a 14 pe. The 2013 FY was raised to $48. Looking at current demand of the New iPad, upcoming iPhone 5 and possible iTV, ITZ is joining the club and adjusting current year & '13 & '14 earnings estimates.
Past ITZ Apple posts    CNBC Video

Mobility is key to Apple's future, it is not only the leading innovator but taking market share.
China has become increasingly important for Apple, and is now the company’s second largest market, thanks to the country’s accelerating growth. Estimates for smartphones sales call for 1 billion unit sales by 2013.

Most technicians have noted that Apple's chart is parabolic. Perhaps...but the price reflects the growth of the company and it's earnings. Near term perhaps it has gotten ahead of itself, but with the stock at $600 these are institutional traders not retail investors driving it higher.
The fundamentals are too strong and any dips have been quick as buyers step in.

Most investors are still underestimating Apple's future earnings power.

ITZ is now raising the 2012 Price Target to $750 from $625. Based on a 15 p/e ---current '12 FY earnings from $45 to $50 ; for FY '13 $60; and for FY '14 $72.
Even these numbers may prove to be conservative and require possible future adjusting.

The chart below takes 2009 through 2014 using a 10 to 15 p/e range... Apple could easily be over $1000 per share in 2 years.

Click On Chart To Expand Image

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