Apple Target Price: $450 Per Share
FWIW, I was at the library last weekend and if my memory serve’s me correctly (if you ask my wife she’ll tell you I checked my memory at the door), Value Line Investment Survey places a low to high price range during the next 3 to 5 years of $500 to $750 give or take. May have to go back this weekend just to make sure, but my range listed here is close.
The Value Line report was dated Oct 8, 2010.
Mad, just for some perspective, back in 07 value line had a price target for CITI of a $100 in a year. Lost a couple of bucks on that one. I have a sneaky suspicion though that all these CITI shares I have accumulated over the last year will more than make up for it. Just give me $5, please.
Adversity does not just build character, it reveals it.
I caution not to extrapolate Apple’s current rates of revenue and earnings growth as a constant into forecast models. FY 2011 will product sensational results and move the share price significantly higher. Beyond FY 2011 I’ll be looking for a valuation model more in line with the recent five year average rates of revenue and earnings growth. My target now is $450 per share. After evaluating FQ1 results I might move that target, but I won’t project outside of a theoretical forecast share price appreciation quite that high. There are far too many factors to consider.
I posted this blog entry back in late September and the conditions described in the post apply even more in the post-September earnings realities. No matter the share price gyrations leading up to and following the earnings release, I’m reiterating my call of AAPL at $450 per share by this time next year.
Snippet: I reiterate my forecast of $100 billion in revenue for Apple in FY 2011 and via of this post I’m issuing a revised price target for AAPL of $450 per share. This target is based on anticipated FY 2011 earnings of $24 per share.
Investors need only be patient to see a 40%+ rise in the share price in the next 12 months. Earnings will propel the share price higher and I don’t anticipate nor factor a rise in the p/e multiple to make it happen.
The original post back for page two to provide context for the discussion.
I’ve started my early work on FY2011 revenue and earnings estimates. I’ll be back on the blog this weekend with more information.
I envision upping my AAPL price target within the next two weeks.