Piper Jaffray Bullish On Apple Touching $135

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The numbers that Apple Inc. AAPL released for its December quarter blew all the estimates on the Street out of water. As a result, the stock of Apple is trading near its all time highs and according to Gene Munster from Piper Jaffray, it’s on its way to go even higher. Munster was on CNBC recently to discuss where Apple’s stock is heading.  

 

“It seems that investors are starting to understand that this product cycle is bigger and deeper than what they initially thought and just one quick take away is that they had 17p global market shares for smartphones in the December quarter, if they apply that for the rest of 2015 that would imply 20p upside to the Street numbers,” Munster said. “So, I think that kind of math is starting to resonate with investors and that’s why the stock is moving higher”

 

Apple Targeting $135

 

On price target for Apple Munster said, “We’re at $135” and when asked about how he feels about that price target, he replied, “feel very good. I think that again if you look at for example the March quarter, the Street is looking for about 25p iPhone growth, they just did 46 in the December quarter, obviously the launch quarter, but if they grow at a kind of a similar rate I think you are going to see this stock move higher in anticipation of that.

 

He continued, “So the big picture is this, they haven’t had a competitive offering to Samsung’s larger phones, they do now. So, they are going to reap the benefits of that for the next two years.”

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Posted In: CNBCMedia
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