How HIGH Will Apple’s Stock Trade a Year From Now?
Apple Inc. (NASDAQ:AAPL), the world’s largest publicly traded company by market value, is one of the most secretive technology firms around. The iGadget maker sends teasing invitations to new product launch events and stays mum on hot rumors that surround the tech giant on a daily basis. However, perhaps the greatest mystery with Apple involves its stock price.
There is no doubt that Apple shares have had an impressive run. Over the past five years, Apple’s stock price has surged 340 percent. Recently though, shares have declined 9 percent since hitting an all-time high of $644 in April. Mr. Market can be wrong when placing price tags on stocks, and considering the growth possibilities with Apple, many analysts believe the company will shed its red tag clearance sale in the coming 12 months.
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The Braeburn Group, an independent online community of Apple analysts, recently published 12 month price targets of 15 Braeburn members. Unlike Wall Street price targets, which range from $270 to $1,200, the Braeburn Group has a more narrow price range. The price targets on Apple at the group range from $700 to $1,100, with the average target being $890. In comparison, the average professional price target is only $724.
The Apple price targets from the Braeburn Group are listed below:
Shaflq Shamji $1,100
Ron Smith $950
Dennis Hildebrand $932
Robert Paul Leitao $915
Sunil Shah $911
Stefan Wyler $910
Patrick Smellie $905
Joao Tavares $900
Mark Beauch $899
Luke Kittell $880
Thomas Fraser $875
Jake Sibley $861
Aharon Pollak $816
Jason Miyagi $790
Ken Naglewski $700
Stefan Wyler, who has a price target of $910, explained, “My price target is $910 based on EPS of about $70 and a P/E ratio of 13.0. I like to be a little aggressive on my earnings projections and slightly conservative on the P/E side because I have confidence in Apple’s ability to deliver strong results but not necessarily in the market’s ability markets to reflect it.” Robert Paul Leitao’s 12 month price target of $915 will also be interesting to watch. He is the founder of the Braeburn Group and made an impressive call last year on Apple shares. On May 31, 2011, Leitao announced his 12 month price target on Apple was $590. At the time, Apple shares were trading near $350. One year later, shares closed at $577, just $13 shy of his price target.
On Monday, shares of Apple closed at $585.78, representing a 2 percent gain for the day. It was also the first time since the beginning of May that Apple closed above its 50-day moving average. Topeka Capital analyst Brian White, who is known for being unfailingly bullish on Apple, predicted the company is likely to generate the highest annual net income this year of any publicly traded company in history. White explained in a note to investors that he estimated Apple’s net income in this calendar year to be more than six times higher than that of Cisco Systems Inc. (NASDAQ:CSCO), Microsoft Corp. (NASDAQ:MSFT) and Intel Corp. (NASDAQ:INTC) individually when those companies were at their respective peaks, and almost twice the aggregate profit of the three combined.
Shares of Apple (NASDAQ:AAPL) closed Tuesday up a fraction of a percent at $587.41 per share.
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