Cramer Has the New Street High Target on Apple - $264
He just had to do it, didn't he? Good, ole' Cramer... always gotta make a splash.
On last night's Mad Money, the pundit boosted his price target on shares of Apple (Nasdaq: AAPL) from $200 to a new Street high $264, which, with the stock up more than 4% to $182.72 today, represents potential upside of more than 44% from current levels.
Cramer believes that if the FASB revises its rules requiring Apple to recognize sales from the iPhone and AppleTV over a 24-month span, Apple would be able to realize what he calls true earnings. According to Cramer, this would push Apple's FY11 EPS from $9 to around $12.
Jim pointed out that competitors such as Nokia (NYSE: NOK) are immune to this rule, also calling the requirement "antiquated and just plain dumb". Cramer finished the segment by also noting that this may not yet be priced into the stock as most analysts and money managers only look at the First Call estimates, and don't really dive into what the impact could be on Apple shares. Cramer said he expects the rule to be revised within the next few weeks.
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