Analysts Look Toward $1000 Share Price, $1 Trillion Market Cap for Apple

[MacRumors]

Over the past two days, a couple of high-profile research analysts have issued reports predicting that Apple's stock will reach the $1000/share milestone within the next year or two, a move that would see that company's market capitalization push toward an unprecedented trillion-dollar market capitalization.

Yesterday, analyst Brian White issued his first research note on Apple in his new position with Topeka Capital Markets. White had previously worked at Ticonderoga Securities, which ceased operations earlier this year. In his initiation report for Topeka, White offers a 12-month price target of $1001 for Apple, citing the appeal of 4G LTE, booming growth in China, and an expected Apple television set as drivers for the company's growth.

We are initiating coverage of Apple with a Buy rating and a 12-month price target of $1,001.00. 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. As such, we believe the Apple story still has a long way to play out in the coming years and we expect the next 12-18 months to be particularly exciting for the Company on multiple fronts.

White also points to Apple's dividend and share repurchase program, with growth of that program in the future, as an additional driver for investor interest in Apple's stock.

Meanwhile, Piper Jaffray analyst Gene Munster weighed in with his own report early today, and while his official 12-month price target for Apple moves from $718 to $910, he believes that the stock will roll on to reach $1000 in 2014.

While our 12-month price target is $910, we believe shares of AAPL can reach $1,000 beyond our one year price target window, specifically in 2014 when we believe investors will begin to factor in CY15 numbers. Even conservatively applying the 12x forward year EPS multiple (CY13) that Apple is currently trading at to our CY15 estimate of $80.18, we reach a $960 share price. Furthermore, we believe factoring in an Apple Television could add more than $4 in EPS (5%) by CY15, which could yield over a $1,000 share price (12 * ~$84).

Munster estimates that half of the predicted $400 billion growth in Apple's market cap will come at the expense of its competitors, while the other half will come from new money entering the tech sector.

Given Apple's current share count of roughly 930 million, a $1000 price would see the company pushing toward a market capitalization of $1 trillion. As we noted last month, Microsoft set the standard for highest market capitalization for a publicly-traded company back in 1999 at $604 billion. Apple is roughly $20 billion short of that number as of today, but when adjusted for inflation, Microsoft's peak market cap would have corresponded to over $800 billion in today's dollars.

Article Link: Analysts Look Toward $1000 Share Price, $1 Trillion Market Cap for Apple

[Dr McKay]

$1 Trillion by 2014? Wow that's incredible!

[basesloaded190]

This stock is going to be traded mainly by large firms soon as the average Joe won't be able to purchase stock and those prices.

[ronjon10]

[DotCom2]

Originally Posted by basesloaded190

This stock is going to be traded mainly by large firms soon as the average Joe won't be able to purchase stock and those prices.

I'm sure Apple is aware of this and there will be at least 1 stock split.

[macnerd93]

this is gonna be awesome wonder if they could actually buy a small country :L

[propynyl]

I hope it's true, I got in at $535.

[iJon]

Originally Posted by DotCom2

I'm sure Apple is aware of this and there will be at least 1 stock split.

I'm not so sure Apple's priority is for an average joe to be able to afford 1 share of stock.

If there is a stock split, I doubt it's for those reasons but that's just my opinion.

[sparks05]

I guess the law of large numbers should be called the "Law of Extremely Large Numbers" . . . at least in Apple's scenario

[Doc750]

My ten shares purchased at $209 are looking pretty good right now.

[OrangeSVTguy]

Wow.

[drummingcraig]

Its only a matter of time before AppleNet becomes self-aware and our iDevices attack us and start WWIII.

[Taz Mangus]

I marvel every time Apple stock gains a new high, seems like a daily occurence. Up over $200+ in the last 3 months. It is great time to be a Apple stock holder. The P/E is still pretty low.

[finnns2000]

Can't complain about that. If any stock gets into the $1000's, it should be AAPL.

[KPOM]

Apple has solid earnings, but now it seems like the analysts are piling on and getting ahead of themselves. Most of their profits are from mobile phones. While it's a lucrative market, it also can turn on a dime. Look at RIM and Nokia.

I think it's a solid company but am not expecting it to go up another 60+% in the near term given its rise over the past few weeks.

FD: I'm long AAPL.

[pgiguere1]

Wow, I hesitated buying stocks when they were 373$ not too long ago. I was afraid it could go down like crazy once Steve would die (it was right after he retired as CEO). This is just crazy. I'm glad I made the move now.

[pheenix11]

Wirelessly posted

I love Apple but when you start seeing predictions like this it's time to sell. And I'm not talking about Apple specifically, I'm talking about the entire market. Bernanke and friends have succeeded in blowing yet another bubble with cheap money that will burst and take everything with it. Get ready for Mad Max.

[SeniorGato1]

I think that this report assumes Apple will continually unleash devices as successful as the iPhone/iPad. I think that'll be rather difficult. I also don't see Apple's TV's hitting a major market due to the much higher selling price point.

We'll see what they come up with...

[wol]

A bubble is a bubble is a bubble ...

("wise" investors sell if everyone else is buying - and remember that you'll almost never manage to sell a stock exactly at its peak, or buy it at its low point)

[shanmugam]

when that will happen Apple?

it is shame that $500 iPad has very good damn specs compared to MB/MBP/MM ...

[Gooberton]

Originally Posted by finnns2000

Can't complain about that. If any stock gets into the $1000's, it should be AAPL.

If a stock gets to 1000 a share?? There's stocks for 100,000 + for 1 share

[Arcus]

Originally Posted by propynyl

I hope it's true, I got in at $535.

I got in at $12

[314631]

I see no end for this stock surge.

[futbalguy]

Originally Posted by SeniorGato1

I think that this report assumes Apple will continually unleash devices as successful as the iPhone/iPad. I think that'll be rather difficult. I also don't see Apple's TV's hitting a major market due to the much higher selling price point.

We'll see what they come up with...

They are forecasting this to happen in the next year or two. They arent predicting any other new devices besides for the usual yearly updates and the Apple TV. Im not surprised. I have never been happier with my apple products and there is still so much untapped potential. If they release a nice update for iphone 5, they are going to sell a crapload.

----------

Originally Posted by aurichie

I see no end for this stock surge.

Famous last words

[hirshnoc]

Wirelessly posted

Berkshire Hathaway stock shares go for like $121,000 a share. Market cap isn't this big though. Apple wouldn't be breaking any records hitting $1K. Maybe for the NASDAQ, but not in history.