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Can Apple stock hit $1,001 a share?

April 02, 2012|By Deborah Netburn
  • Apple CEO Tim Cook speaks during an Apple product launch event at Yerba Buena Center for the Arts in San Francisco.
Apple CEO Tim Cook speaks during an Apple product launch event at Yerba Buena… (Kevork Djansezian / Getty…)

One analyst is predicting that Apple stock will hit $1,001 in the next 12 months.

Some people might call that number crazy, but Brian White, an analyst with Topeka Capital Markets who authored a report released Monday called "Apple Fever has More to Run," said if anything the valuation might be too conservative.

"All we're doing is putting a 17 multiple on the earnings for 2013 and then adding back $103.66 cash," he said. "I think it's a conservative number. For most of its history Apple's growth rate was 86% a year."

On Monday, Apple stock closed at 618.63.

In the report, White says he still sees a lot of growth potential in the company.

He has especially high expectations for the iPhone 5, which is rumored to run 4G and maybe even have a bigger screen, and may hit the market as early as June, or possibly in the fall.

He also points to Apple's rumored entry into the TV market, which  could lead to a $100-billion market opportunity.

Then there are the growing sales opportunities in China, home to 1 billion wireless subscribers, and an expected 230 million 3G subscribers by the end of the year.

He notes that the largest carrier in China, China Mobile,  which has 66% of the market share in the country, still does not officially offer the iPhone, but he expects that will change over the next year.

And don’t forget about those attractive dividends the company is now paying investors, as well as Tim Cook's strong performance as Steve Jobs' successor.

"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 writes in the report. "We strongly believe Apple will become the first trillion dollar market capitalization company in the world."

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Siri may soon talk to a Mac near you

82% of iPad owners 'very satisfied' with purchase, study says

Consumer Reports says new iPad heat nothing to worry about

Original source: Can Apple stock hit $1,001 a share?

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