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Apple Investors Have 'Unique' Opportunity, Gene Munster Says

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One of Apple Inc. (NASDAQ: AAPL)'s most widely followed analysts is Piper Jaffray's Gene Munster, who holds an Overweight rating and a $179 price target on the stock.

Last week, Munster was on CNBC discussing his thesis that calls for 50 percent upside in Apple shares by September.

"There are periods where we think there are unique opportunities, and this is one of them," Munster explained. "Valuation on a ten-year basis is near a historical low," he added, stating that while "everyone is waiting for a [guidance] reset," there's a chance iPhone numbers won't be as bad as perma-bears are expecting.

"I don't think the iPhone guide is going to suggest 40 to 45's going to closer to 50 to 55 [million], and that's going to be a positive for the stock."

Moreover, Munster said negative currency impacts are already baked into the stock price and "embedded" into what the market expects iPhone numbers to be.

What About M&A?

Also mentioned on the broadcast was Munster's thesis that Apple buying Tesla Motors Inc (NASDAQ: TSLA) makes sense. Earlier this month, Benzinga spoke with Munster about this M&A idea.

At the time, Munster said Apple's enormous cash balance could be used to expand its presence in the auto industry, adding that $35–50 billion for Tesla is "not a lot of money" given its cash hoard.

The move "makes a lot of sense," he added. Tesla's battery tech, IT infrastructure and engineering capabilities make the company attractive beyond its current slate of automobiles.

Ahead of Apple's earnings report, the stock is trading between $100 and $101 per share on Monday.

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Apr 2017Morgan StanleyMaintainsOverweightOverweight
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