Ticonderoga Bumps Apple Stock Target to $550

| Apple Stock Watch

As high as Apple’s stock has risen, it’s not high enough for Ticonderoga Securities analyst Brian White, who bumped his 12-month price target for the stock to US$550 per share, with a “Buy” rating. Mr. White’s central reasoning is that the stock is trading at a low multiple to estimates compared to the S&P 500, and that Apple is poised for continued growth.

According to Tech Trader Daily, Mr. White wrote in a research note that AAPL is currently trading at 11x his earnings per share estimates for calendar 2011 after you take out the staggering $64 per share in cash Apple holds. The stock is also trading at just 10 times 2012 estimates.

He then noted that Apple could increase its earnings by as much as 37% this year and compared that to the S&P 500, which is estimated to see its collective EPS figure increase 11% in 2011.

Bringing it all home, he noted that the S&P 500 is trading at 14x those 2011 projections, higher than Apple’s 11x, which is the main justification for his new price target.

Shares of Apple traded higher Monday, ending the day at $337.45, a gain of 10.73 (+3.28%), on moderate volume of 20.4 million shares trading hands.

*In the interest of full disclosure, the author holds a small share in AAPL stock that was not an influence in the creation of this article.  

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Comments

xmattingly

Jesus. I’m kind of curious to know what typical stock prices are for other electronics/computer brands. And when is Apple going to split the stock again?

Constable Odo

What is with these analysts?  Apple isn’t even close to $350 and they’re talking $550.  $400 by the end of the year seems like a reasonable figure.  If Steve Jobs offhandedly mentions to some neighbor he’s been feeling a bit under the weather, Apple shares will plummet down to $300 because to panicky shareholders that means he’s not going to survive the winter or something.  Too many weak-kneed investors dumping Apple shares for no reason is why the stock can’t get any solid traction.  Steve Jobs is not very healthy.  Who doesn’t know that by now?  Still, it gets rehashed every time with the same results.  Steve should have said he was going to Acapulco for well-deserved rest.  It probably would have produced the same share dump panic because then panicky investors would just assume he wasn’t telling the truth.  Can’t win either way.

Radovich

Actually, most people don’t interested in jobs’s medical leave. Words said by the successor is powerful. What apple has done with ipad, mac, iphone, making app creators and investors like ifunia pour all their energy to follow it.
news about apple upcoming ipad2.

rplat

Poor old Microsoft . . . there feeble and desperate marketing behavior is pathetic.

ctopher

Ticonderoga? Aren’t they famous for the #2 pencil?

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