Fortune reports on a research note put out by Morgan Stanley’s Katy Huberty in which she raised Apple’s price projections from $515 to $720. She noted, however, $960 was the bull valuation for AAPL out over the next year.
The reason for such a high valuation:
“We believe Apple’s earnings power is potentially far greater than investors believe and our prior bull case model suggested,” she wrote citing three main factors:
- 1) Enterprise tablet adoption combined with demand upside from lower-priced iPad.
- 2) iPhone estimates don’t credit Apple for the potential share gains when it launches an LTE-capable device in 2H12.
- 3) China and other emerging markets, like Brazil, remain huge untapped markets.
More information is available at Fortune.
Update: AAPL is skyrocketing, up over 2% on the news.
- iPad 3 press invite and favorable market push AAPL toward half a trillion market cap (9to5mac.com)
- Tim Cook unloads $11 million in AAPL stock (9to5mac.com)
- AAPL passes 10% of all of NASDAQ value as analysts target half a trillion dollar valuation (9to5mac.com)