Apple stock: forget $300, make that $600
Posted by Dennis Sellers 
Dec 27, 2007 at 6:03pm
Yared Investment Research CIO Georges Yared thinks that Apple’s stock will continue to grow and has raised his target price to US$300. But forget $300? Why not $600?
Stephen Coleman, chief investment officer at Daedalus Capital, which owns about $7 million of Apple shares, projects the stock will hit that number in 18 months. “There’s so much growth to look forward to for the iPhone,’’ he told Bloomberg.
Apple gets about 30 percent of the iPhone fees charged by carriers, Coleman said. Wall Street analysts’ estimates range between 5 percent and 20 percent, he told Bloomberg. Neff was among at least 10 analysts who raised their price estimates for Apple above $200 in October.
What’s more, the iPhone has helped Apple evolve from “a company dependent on one hit product to one with multiple growth engines,’’ Andy Neff, an analyst with Bear Stearns & Co., wrote in a Dec. 6 note. He raised his share-price estimate to $249 from $243 and his earnings projection for the year ending in September by 2.9 percent to $5.40 a share.
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Dennis Sellers
Dennis has been a newspaper editor/reporter (seven years) and teacher (seven years). He has over 4,000 magazine, newspaper and online articles to his credit. He has also covered the Mac and tech industries for over a decade for such online publications as MacCentral, MacMinute and now MacsimumNews.
J. Scott Anderson Says:
“…multiple growth engines,”. I completely agree. I think that the current ones are:
• Macintosh
• iPod
• iPhone (in my opinion its both iPod and Mac)
• Professional software (Creative suites)
You could argue the last one and say that the software engine, including the professional lines) are not really growth engines. They could easily be enablers of growth for the Macintosh line much like the consumer software and the iTunes Music Store are.
So the question I have is, what other growth engines can we see from Apple? Is it possible that they will introduce a gaming platform? I doubt it, but it is a typical guess. How about getting into the vehicle platform development? Is it far fetched to think Apple could develop a division to start building hardware/software solutions for the automobile industry? I, for one, would strongly consider vehicles with Macs (and appropriate software) built into them over the current standard fare of autos. And given the current desperate state of the American auto builders, is it possible that they might even thing outside the box enough to approach Apple to do just this?
What do you guys think? What are the other potential growth engines that would fit in with what we know about Apple?
Posted on December 28, 2007