Apple Should Trade $607: Gene Munster


I like this.


Mr. Gao co-found and became the CFO at Oxstones Capital Management. Mr. Gao currently serves as a director of Livedeal (Nasdaq: LIVE) and has served as a member of the Audit Committee of Livedeal since January 2012. Prior to establishing Oxstones Capital Management, from June 2008 until July 2010, Mr. Gao was a product owner at Procter and Gamble for its consolidation system and was responsible for the Procter and Gamble’s financial report consolidation process. From May 2007 to May 2008, Mr. Gao was a financial analyst at the Internal Revenue Service’s CFO division. Mr. Gao has a dual major Bachelor of Science degree in Computer Science and Economics from University of Maryland, and an M.B.A. specializing in finance and accounting from Georgetown University’s McDonough School of Business.

He’s probably the most notorious Apple bull on the Street, but Gene Munster’s upside expectations for Apple stock (NASDAQ: AAPLNews) are eye-popping, even for him.

His price target is $607.

If you follow the tech sector at all – Munster’s Apple optimism comes as no surprise. You probably even expect his overweight rating – after all he often expounds on the company’s virtues and must have gadgets.

But $607? Considering the stock was slightly below $400 at the time of writing that’s a big move.

But Munster is resolute.

“I’m expecting shares to be driven by new product roll outs,” he says. “In 2012 there will be new hardware on iPads and iPhones and we believe a new Apple TV is coming late in the year.”

In fact, Munster thinks Apple TV alone will be very exciting if not a game changer – for both gadget gurus and the stock.

“We’re hearing it has DVD, Internet and gaming integrated into a seamless experience,” he says.

And equally important, Munster is expecting Apple to do something with all that cash they have on the balance sheet.

“By next year, Apple will have $120 in cash and they’ll have to do something,” he says. “I don’t think they’ll buy back but I do think they’ll issue a one time dividend.”

Add up all the catalysts and Munster says although his firm has 12 picks for 2012, of them all Apple is the best.


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