Apple Should Trade In-Line With Market Multiples, Deutsche Bank Says

On Thursday, Deutsche Bank initiated coverage on share of Apple

with a Buy rating and $650 price target. Share currently trade “below market multiples at 11x the analyst's FY-15E,” but “should trade in line with market multiples,” according to analyst Sherri Scribner. iPhone and iPad growth is “expected to decelerate,” but the analyst believes the products “to be the key growth driver for Apple over the next year, with further upside in iPhones coming from a larger screen sized phone and further penetration in emerging markets.” In addition to wearables and a television, Apple is “well positioned to bring its expertise to the connected home,” said Scribner. The $650 price target “assumes Apple trades at 14x FY-15 EPS of $46.50.” Scribner's $650 price target is 22 percent above current levels. Shares are flat in Thursday's pre-market trading.