Apple set to be worth $1 trillion in a year

ZURICH - May 9, 2017 - PRLog -- Apple set to be worth $1 trillion in a year

• A team of analysts at Eduard Steinbach Plc. have raised the price target on Apple stock to $180 per share, the highest estimate by analysts who cover the company to-date.

• Apple is hugely underappreciated, James Alexander Vice President of Eduard Steinbach Plc. writes in a note to clients.

• Should shares of Apple climb to this price target, the company would be worth $1.06 trillion.

After reporting mixed earnings last week, Apple was given a $180 price target, its highest to date, by one of Eduard Steinbach's senior analysts on Monday.

With the expected release of the iPhone 8 this fall, Apple is only in the "early stages" of unlocking upside potential for investors, Steinbach's Vice President of International Research and Development wrote in a note to clients on Monday.

"We believe Apple remains among the most underappreciated stocks in the world," Alexander said.

The senior portfolio manager raised his 12-month price forecast for Apple stock to $180 from $160, reiterating a buy rating on the shares. Apple closed Friday at $148.96 per share. If the stock climbed to Alexander's target (a gain of more than 35 percent), that would give the iPhone juggernaut a market value of $1.06 trillion based on its current share count of 5,247 from FactSet. His 12-month price target is based on applying a 16 P-E to his 2018 pro forma EPS estimate of $10.49 and then adding the company's cash per share. The analyst argues this is more than reasonable considering the S&P 500 currently trades at 16 times 2018 estimated earnings.

"Apple's valuation has been depressed for years as investors grew concerned that Apple would fall victim to the missteps of consumer electronics companies of the past," Alexander wrote. "However, Apple has proven its resilience through its unique ability to develop hardware, software and services that work seamlessly together."

As of Friday's close, shares of Apple have risen 60 percent over the past 12 months and are up about 29 percent this year.

For further information go to http://www.eduardsteinbach.com