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Topeka Capital Markets senior analyst Brian White explains why you should buy Apple.
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Beautifully we'll turning back to the markets let's -- went on apple a major mover despite more analysts' downgrades and target cuts Mizuho jumping on the bandwagon today.
The stock down more than 25% the last three months all as competition from Microsoft and Samsung backed out -- -- is so popular.
But what I told you there's an analyst out there with a price target on apple other.
More than 1000 -- yes you heard us correctly 1111.
Dollars to be exact.
It is Brian white a to BC capital markets were pleased to have -- on -- with us right great to have you.
-- -- -- that the -- to your specific target 1111.
And I know the thesis of your outlook is based on.
The PE being very cheap and we've been talking about a cheap PE ratio for apple for some time now so let's start there with a valuation.
So right now it's trading at under eight times X cash a -- thirteen numbers.
The company has grown 92%.
A year and -- PS over eight years the S&P right now.
Trades at about twelve and half times and has grown 7%.
Also part of your thesis demand in China but you know the product debut last week was met with quite -- but yet you're optimistic heading into the Chinese new here there's going to be Appleton man that.
Owning iphones in particular status symbol in China.
It is a status symbol so let's let's be clear there were some concerns win the iPhone 5 came out on Friday.
The numbers over the weekend we're over two million which is spectacular.
And and so so what are what are the things and I'm noticing here.
In this negative news cycle is that everything is interpreted negatively.
Why were there are no lines in China well a lot of the iPhone 5 ordering is -- So when do you expect apple shares to retrace the all time high over 70705.
Dollars checks -- I see no reason why we can't see that over the next three to four months.
Want him running short on time but I have to challenge with a bearish case here Samsung galaxy phone very popular Microsoft -- properties windows -- having a renewed impact.
New web app stores counting Apple's iTunes and leadership is really the main thing Tim Cook in the whole.
Maps if she was quite -- debacle so the only about competitor out -- Samsung.
That matters OK what about the leadership what about Tim Cook what about not a lot of interesting stuff in the pipeline.
So Tim Cook just remember he's really led this company along with Steve Jobs for several years.
So now it's all and his -- shoulders but I think in general has done a good job out what I think about new products.
AppleTV it's on the horizon.
Apple will dominate the TV market over the next five to take -- -- -- thanks -- time they're now because we'll see what happens will definitely checking back in with French.
