Following Apple’s blowout Q3 quarter which saw the company’s profits increase an astounding 77%, JP Morgan analyst Mark Moskowitz upped his target for Apple’s share price to $400.
We reiterate our Overweight rating and increase our Dec-11 price target to $400, from $390 previously. Apple is also on the J.P. Morgan Analyst Focus List. While the media-driven frenzy over the iPhone 4 antenna issue is not likely to fade yet, we believe Apple’s quarterly performance should restore focus back on the model’s high-growth stature. At 13.9x our revised C2011 EPS estimate, versus the peer group average of 12.6x, we believe Apple is trading like a value stock and not as the high-growth story in large cap equities.
via Business Insider
July 21st, 2010 at 10:03 pm
love how people still use P/E wit AAPL, even though the 42 billion in cash is about 50-60 bucks of the price. No other company, except for perhaps, MSFT, which by the way has a flat growth line, can take cash out of the price and end up with a single digit P/E going forward, which when combined with 15-25% growth, makes AAPL undervalued at 400 bucks.