Apple-mania spreads, Piper Jaffray sees $1K stock

SAN FRANCISCO/NEW YORK Wed Apr 4, 2012 9:30am IST

A boy looks at an Apple iMac desktop computer at the new Apple Store in Pudong Lujiazui, in Shanghai July 10, 2010. REUTERS/Aly Song/Files

A boy looks at an Apple iMac desktop computer at the new Apple Store in Pudong Lujiazui, in Shanghai July 10, 2010.

Credit: Reuters/Aly Song/Files

Related Topics

SAN FRANCISCO/NEW YORK (Reuters) - Apple Inc shares set a record high on Tuesday after Piper Jaffray supported Topeka Capital Market's assertion that the stock should breach $1,000 in a year or two, propelled by emerging markets growth and new products that could include a revolutionary TV set.

Piper Jaffray senior research analyst Gene Munster, a longstanding bull on the world's most valuable company, joined Topeka analyst Brian White in predicting a run to $1,000 - but by 2014, versus White's timeframe of around 2013. That would make Apple the world's first trillion-dollar company.

On Monday, White ignited debate on online forums by publishing a report predicting Apple's shares are set to rocket to $1,001 within the next 12 months as it branches into new markets and expands its footprint in China.

Raising Apple's stock price targets has become something of a game on Wall Street as the value has doubled in 2011 alone, driven by a track record of shattering earnings and revenue expectations and sales estimates on the iPad and iPhone.

The company's newest tablet sold 3 million units in its first weekend in March.

"Shares can reach $1,000 based on our belief Apple will continue to win in global mobile devices," Munster, who is maintaining a shorter-term, formal target of $910, said in his Tuesday report.

Apple has in past years persistently defied Wall Street's most bullish expectations, armed with an array of products that have shaken up the music, media and technology industries.

Apple shares set an intraday peak of $632.21, before closing up 1.7 percent at $629.32 on Nasdaq.

"Driven by an ever expanding portfolio of innovative products, a growing integrated digital grid, unmatched aesthetics and a brand that is able to touch the soul of consumers of all backgrounds, Apple fever is spreading like a wildfire around the world and we see no end in sight to this trend," White wrote in an April 2 note initiating coverage of Apple.

White, formerly of Ticonderoga Securities, noted that the latest version of Apple TV - a box used to stream online video - with a refined user interface, could be a prelude to "a full blown TV" over the next year from the company. The new product is expected to revolutionize the way content is distributed into living rooms, similar to the way Apple's iTunes has changed music delivery, analysts said.

Many observers had once cast doubts that Apple's stock could even hit $500 and $600. Today, its median price target stands at slightly below $700, according to Thomson Reuters data.

(Reporting By Jennifer Saba; Editing by Gerald E. McCormick and Richard Chang)

FILED UNDER:
Comments (0)
This discussion is now closed. We welcome comments on our articles for a limited period after their publication.

  • Most Popular
  • Most Shared

Diplomacy

REUTERS SHOWCASE

Maruti Results

Maruti Results

Maruti Suzuki says profits helped by sentiment, not growth.  Full Article 

Tracking the Monsoon

Tracking the Monsoon

Monsoon turns patchy after revival.  Full Article 

ICICI Profit Up

ICICI Profit Up

ICICI Bank Q1 net profit up 17 percent, beats estimates.  Full Article 

Pharma Sector

Pharma Sector

FDA raises concern over drug production process at Cadila  Full Article 

Coal India

Coal India

Some Coal India mines may be run by foreign firms - minister  Full Article 

Fuel Prices

Fuel Prices

IOC to cut petrol prices by 1.5 pct from Friday  Read 

Economic Pulse

Economic Pulse

India's infrastructure output growth hits 9-month high in June  Full Article | Related Story 

Joint Bid

Joint Bid

ONGC, Oil India bid $1.5 bln for stake in Murphy Oil's Malaysia assets - sources  Full Article 

Reuters India Mobile

Reuters India Mobile

Get the latest news on the go. Visit Reuters India on your mobile device.  Full Coverage