Recently there various agencies have either upped their targets or initiated coverage of Apple (aapl) at pretty high targets. For example Gabelli & Co started coverage of Apple with a target of $450 and Kaufam upped it from 380 to 395 but these are one year targets.
Looking into his crystal ball Gene Munster the long time Apple analyst for Piper Jaffray argues that in five years Apple could become a $200 b revenue a year company and rocket Aapl to $1000. Apple's market cap will then be close to a trillion $, compare this to the largest company in the world Exxon which currently has a market cap of around 360 b.
Some people say this is crazy but as the stock is already past 320 it's only triple the current price. Only? Well a 1000 invested in Aapl 10 years ago would be worth 43000 so historically Apple has sustained such growth rates. Three years ago Aapl was only around 90 so it has already tripled. Still some still argue that as Apple gets bigger generating such huge revenues might be a challenge not to mention PE compression issues (as growth companies get very big their PE ratios tend to get smaller). Personally I think Apple stock is going to go up, how much in five years I'll have to chew more on it...
Read Jay Yarow's article on Munster's analysis here:
