Apple (AAPL) Passes $500; Can It Stick?

All eyes were on Apple (Nasdaq: AAPL) Monday morning as the tech giant crossed $500 per share for the first time ever.

The milestone, while not technically important, is a key psychological level. Since reporting blow-out earnings on January 24th, the stock is up 19 percent. And since Steve Jobs passed away the stock is up 33 percent.

Despite the massive surge in the stock it can still be argued that shares are undervalued.

At current levels, Apple trades at just 11.9x FY12 EPS estimates. This is below the market multiple of about 14x. If shares traded at 14x this year's estimates, the stock would be at $593.

Analysts on Wall Street also believe the $500 level is just a stepping stone. The average price target on Wall Street is $578.47, according to data at StreetInsider.com's Rating Insider.

StreetInsider.com placed its own $800 price target on Apple.

Any way it's sliced, it looks like shares of Apple can continue to rise.

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