The shares of Apple Inc. (NASDAQ:AAPL) will reach $1,000 per share, according to Andy Zaky, Bullish Cross analyst and contributor at AppleInsider. He also initiated a “buy” recommendation for the stock.
In his report, Zaky emphasized that the best time to buy Apple’s stock is when a majority of people are pessimistic and thinks Apple will fall, and when every person is stating his reasons on why Apple Inc. (NASDAQ:AAPL) peaked. He said, when these things are obvious, it’s time to buy the stock.
Carlson Capital's Black Diamond Arbitrage Partners fund added 1.3% net fees in the first quarter of 2021, according to a copy of the firm's March 2021 investor update, which ValueWalk has been able to review. Q1 2021 hedge fund letters, conferences and more At the end of the quarter, merger arbitrage investments represented 89% of Read More
Zaky also emphasized in his report that he only initiated five public buy recommendations in the past for Apple’s stock. According to him, his current recommendation for Apple Inc. (NASDAQ:AAPL) is one of those “rare buy points.”
He is positive that Apple has a great opportunity to increase its stock value by more than 60 percent within the next twelve months. This means Apple’s existing stock price at $630 per share will become $1000 per share. His estimate is based on an assumption that the company will continue to trade on the same depressed valuation. If Apple’s valuation improves, he thinks the stock value of the company will reach a $1000 per share by July of 2013.
Zaky pointed out the high consumer demand for the iPhone 5 is one of the contributing factors for his estimate. Despite all the controversies and criticism about the Maps app, the iPhone 5 is considered the most aggressive international rollout in the history of consumer electronics. In addition, he also cited the consensus estimate of analysts that Apple Inc. (NASDAQ:AAPL) will be able to sell approximately 160 million to 180 million iPhones in 2013. He expects Apple to increase its iOS mobile device production and shipment during the first two quarters of 2013, based on the company’s a large amount capital expenditures.
In his report, Zaky wrote, “Yet, assuming that Apple Inc. (NASDAQ:AAPL) delivers at the low end of the range, the company will likely report just a little over $66.00 per share in 2013. At a 15 P/E ratio, that would put Apple at $990 a share before the end of next October.”
According to him, since 4Q 2009, Apple’s P/E ratio at 35.87 went down quarter after quarter, until it stabilized at a range of 14.5 to 15.5. He assumed that Apple will trade on this P/E rate in the quarters ahead.
He noted that the downward movement of Apple’s P/E ratio brought the highest increase in stock value of the company. Zaky wrote, “As a result of this collapse in the P/E ratio, Apple saw one of the biggest rallies in its history, which aimed to correct Apple’s overly depressed valuation. The stock went on an almost vertical parabolic rally, from $420 a share up to $644 in just two and a half months time. This rally helped bring Apple back to its center of gravity, near the 15-P/E ratio level.”
Zaky believes that buying Apple Inc. (NASDAQ:AAPL) stock at $630 per share is a good investment for any fund manager. He said, It’s an easy 60 percent gainer over the next 12-month period.” He also suggested, “Apple should be a top holding for the average fund…” According to him, the $630 per share stock value of Apple is an “extraordinary buying opportunity” and “the stock is headed straight for $1000 a share.”
In a separate report, Apple Inc. (NASDAQ:AAPL) released invitations for a special event on October 23. Analysts from Barclays Equity Research expects the event includes the launching of the iPad Mini, which comes with different configurations and pricing. They believe the starting price for the iPad Mini is around $249.
Analysts believe that Apple’s 7.85-inch tablet will compete with the low-end tablets of its competitors Amazon.com, Inc. (NASDAQ:AMZN), Google Inc (NASDAQ:GOOG), and Samsung Electronics, Co. Ltd. (LON:BC94).
Analysts maintained their “buy” rating on Apple Inc. (NASDAQ:AAPL) stock, with an $810 per share price target.