No doubt about it, Apple Inc is a money-minting machine.
As if its mega cash hoard of nearly $100 billion were not enough, now it seems that Apple’s shares could hit $1,001 in the next 12 months.
In a report called “Apple Fever Has More to Run”, Brian White, an analyst with Topeka Capital Markets, made the stunning stock prediction based on the fact that the tech giant still has plenty of room to grow.
“We believe the Apple story still has a long way to play out in the coming years and we expect the next 12-18 months to be particularly exciting for the company on multiple fronts,” White wrote in the report, which was quoted by Los Angeles Times. “We strongly believe Apple will become the first trillion-dollar market capitalisation company in the world.”
Another influential analyst supported White’s estimates, although he said the $1,001 target would be hit by 2014, according to a Reuters report.
Even with the dividends and stock buybacks, Apple’s total cash balance is estimated to grow by more than $30 billion a year
On Tuesday, Apple stock was trading around $628 a share.
Whew! There’s just no stopping Apple, is there? The famed maker of the ipad, iphone and ipod is already the world’s most valuable company with a lineup of products that have revolutionised the media, music and technology industries. Currently, its market capitalisation is a little more than $500 billion. Ten years ago, the company’s shares were trading at about $10.
Until now, only Apple’s co-founder, Steve Wozniak, has publicly proclaimed that $1,000 is likely soon, according to this CNBC report.
Once, several industry watchers had doubted whether Apple could even hit $500 a share. Currently, the median price target on its shares stands slightly below $700, according to Reuters data.
Super-high expectations over the growth of the ipad5, Apple’s anticipated entry into the TV market and growing sales opportunities in China are just some of the reasons cited for White’s bullish estimates.”…Apple fever is spreading like a wildfire around the world and we see no end in sight to this trend,” he says in the report.
That kind of explosive growth will only add to the nearly $100 billion cash pile the company already has. Just last month, giving in to shareholders’ demands, Apple said it would use some part of its massive cash hoard to pay a dividend to shareholders and buy back some of its shares.
But even these are unlikely to dent Apple’s coffers. As this New York Times story notes, even with the dividends and stock buybacks, Apple’s total cash balance is estimated to grow by more than $30 billion a year in the near term because of how much new cash it takes in from its business.
By the close of Apple’s next fiscal year, which will end in September 2013, Apple could have around $180 billion in cash, after dividends and buybacks, Gene Munster, an analyst at Piper Jaffray, told the US-based newspaper.
Yes, Apple is on a roll.
