Ticonderoga Bumps Apple Stock Target to $550

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.