Thanks to massive growth in China, the Apple Television and the next iPhone, Apple is set to see its stock price rise to the heady heights of US$1,001 per share within 12 months, according to an analyst.
Apple’s stock closed at US$618.63 last night, a 61.809 per cent increase within a year could see the share price increase to US$1,001. Over the past twelve months Apple’s share price has risen from US$344.56 – that’s a 79.542 per cent increase over the past twelve months, so perhaps the prediction doesn’t sound so unfeasible.
Topeka Capital Markets analyst Brian White is basing his price target on his estimate for Apple’s calendar-year 2013 earnings, multiplied by 17. He also notes the following factors in his bullish prediction:
China: White claims that China’s largest mobile network, China Mobile, will start carrying the iPhone within the year. He points out that this will bring the iPhone to 230 million people.
New iPhone: White suggests the new iPhone will work on ‘speedier wireless networks’. (This is likely to be the same LTE 4G as offered with the iPad and therefore not available in Australia).
Smooth CEO transition: White emphasized that the stock has risen more than 60 per cent since Tim Cook took over from the late-CEO Steve Jobs. “Steve Jobs’s health was such a fear that was hanging over the stock. Now you’ve seen that Tim Cook is doing a good job,” he said, according to a Bloomberg report.
Market share: White thinks that since Apple’s Mac and iPhone have small market share they have room to grow.
Smaller iPad: White thinks Apple will launch a smaller iPad, despite Steve Jobs claims to the contrary.
White doesn’t stop at his US$1,001 a share prediction, he also thinks Apple could be the first company to generate US$1 trillion in revenue within the next decade.
The next highest stock value prediction is the US$800 target of Morgan Keegan’s Tavis McCourt.