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Tuesday, April 3, 2012

Gene Munster's $1000 AAPL target

I was thinking about what Gene Munster's $1000 Apple target would mean in relation to the stock today. From what I gather, he is projecting the stock to reach $1000 by the end of 2014.

Gene's estimates I believe account for multiple contraction (as I kept hearing his 2014 estimates call for a 12 multiple). If he is correct, Apple's stock will need to see appreciation every month until 2014.

The above are mean numbers, and assumes a consistent rise to $1000. Basically we will need to see a $8 stock appreciation every month in 2012. In 2013 and 2014 the stock will need to see an appreciation of $12.5 every month.

Is this reasonable? Gene has generally been conservative in his estimates, and if Apple continues to execute, as the level it is today and has been over the past few years, absolutely.

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