Apple (AAPL) Still Incredibly Undervalued, Minimum 25% of Upside Expected in 2012
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There's no question that Apple (Nasdaq: AAPL) has strung together an impressive run in its stock price, making it the second most valuable U.S. company by market cap behind Exxon (NYSE: XOM).
But more may still be in store.
Over the weekend, Barron's outlined it's top-tech picks in tech for 2012. Atop the list was Fusion-IO (NYSE: FIO), which is up anywhere from 11 to 13 percent Monday. Barron's liked Fusion-IOs data storage initiatives, and has a price target of $52 over the next year.
For Apple -- which came in at number 10 -- Barron's points to the delay in iPhone purchases as an initial catalyst, following it's rare earnings miss last week. With Apple only occupying 6 percent of the global mobile handset market, compared with 25 percent for ailing Nokia (NYSE: NOK), Barron's believes there's room to grow.
One analyst contends that earnings could expand 23 percent to $34.04 for 2012 and revenue might grow 28 percent to $138.34 billion, both in-line with Street views.
What does this mean for shareholders? One analyst, using a modest 15 times model, says shares should hit $495, about 25 percent from its closing price last Friday. He also likes using some of Apple's cash for a dividend, which could open the stock up to a whole new class of investor, and send shares ripping higher. The stock trades for about 11.7 times expected 2012 earnings and just 10.3 times next years earnings. Take out about $27.93 in cash, and that drops to 9.6 times...leaving plenty of room for upside when compared to competitors.
Earlier in October, we reported that Apple might also be about to earn about $50 per share next year should growth continue at its historical pace. At a 10 times multiple, that puts Apple shares at $510 in 2012.
Apple is trading 1.6 percent higher Monday morning.
But more may still be in store.
Over the weekend, Barron's outlined it's top-tech picks in tech for 2012. Atop the list was Fusion-IO (NYSE: FIO), which is up anywhere from 11 to 13 percent Monday. Barron's liked Fusion-IOs data storage initiatives, and has a price target of $52 over the next year.
For Apple -- which came in at number 10 -- Barron's points to the delay in iPhone purchases as an initial catalyst, following it's rare earnings miss last week. With Apple only occupying 6 percent of the global mobile handset market, compared with 25 percent for ailing Nokia (NYSE: NOK), Barron's believes there's room to grow.
One analyst contends that earnings could expand 23 percent to $34.04 for 2012 and revenue might grow 28 percent to $138.34 billion, both in-line with Street views.
What does this mean for shareholders? One analyst, using a modest 15 times model, says shares should hit $495, about 25 percent from its closing price last Friday. He also likes using some of Apple's cash for a dividend, which could open the stock up to a whole new class of investor, and send shares ripping higher. The stock trades for about 11.7 times expected 2012 earnings and just 10.3 times next years earnings. Take out about $27.93 in cash, and that drops to 9.6 times...leaving plenty of room for upside when compared to competitors.
Earlier in October, we reported that Apple might also be about to earn about $50 per share next year should growth continue at its historical pace. At a 10 times multiple, that puts Apple shares at $510 in 2012.
Apple is trading 1.6 percent higher Monday morning.
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