Apple is poised to become “the most profitable company ever,” according to Topeka Capital analyst Brian White, suggesting that Apple, who currently has a market cap of US$554 is set to be valued in terms of trillions.
“We believe investors should think of Apple’s market cap potential in terms of trillions, not billions,” White said.
The reason for his confidence is that, while other companies that have been valued at US$500 billion in market cap have then seen their market cap reduce to lower levels over time, Apple is not like those companies.
For example, Exxon-Mobil passed US$500 billion market cap in 2007, however the company was valued at US$388.6 billion last night.
White notes that the other +US$500 billion companies: Cisco, Exon-Mobile, General Electric, Intel and Microsoft all enjoyed “rich P/E ratios” and had “monopoly-like market share positions”. He states: “neither of which is the case for Apple”, notes a report.
In other words, there is plenty of room for Apple to grow, according to the analyst.
Regarding market share, White notes that Microsoft had 90 percent share of the PC market in 1999. White points to IDC’s estimates that Apple has 4.7 percent of the PC market in the first quarter of 2012 and 8.8 percent share in the mobile phone market.
He did add that Apple’s share of the media tablet market is 68 percent.
Topeka Capital Markets analyst Brian White, who was the first to suggest that Apple could pass the US$1,000 price-target mark, has now raised his target to predict that Apple could hit US$1,111 within 12-months.