Everybody’s favourite stock market picker, Jim Cramer, has gone bullish on Apple, citing a $300 price target on the company, while warning no one would believe him if he targeted $400 – which he privately feels is also possible. This, just a week after telling his viewers that AAPL would plummet after the earnings call:
He told viewers that Apple analysts will likely be disappointed with the company’s earnings when they report on Monday, due to a little known problem with iPhone production that might keep numbers lower-than-expected.
Of course, AAPL shot up over 200 and analysts were estatic.
He now points out “The company cannot meet demand.” Which is the opposite of what Tim Cook said in the earnings call on Monday.
"Apple spoke those magic words during its earnings call on Monday night. And the company wasn’t talking about just its revolutionary iPhone. The consuming public can’t seem to get enough iMacs and MacBooks either. Even during the worst recession since the Great Depression, Apple’s products are flying off the shelves.”
Cramer is so bullish on Apple he predicts next fiscal year’s earnings will reach $13 a share, up from his earlier $12 target. "The equation then would look like this: the growth rate, 30%, times $13 a share equals $390. Why $300, though? “Because you would never believe me,” Cramer said, “so I lopped off 90 bucks to be more realistic.”"