Tags: Munster | Apple | 900 | stock

Piper Jaffray’s Munster: Apple Headed to $900

By Dan Weil   |   Monday, 19 Nov 2012 12:58 PM

Apple stock has dropped 25 percent since Sept. 21, closing Friday at $527.68. But Piper Jaffray analyst Gene Munster predicts the shares will come back with a vengeance — to $900.

He sees strength in the iPhone category and expects Apple to offer a TV product by the end of 2013. At present, data and store surveys show iPhone 5 sales are running stronger than Wall Street forecasts, Munster said on CNBC.

“I tell [investors] it doesn’t look pretty today, but there’s a brighter future in the next month or two,” Munster said.

Editor's Note: How You Lost $85,000 During the Last Decade. See the Numbers.

“The reality is the stock should be significantly higher, and I think $900 — it’s not going to be there tomorrow, but we should be on a pace to that based on these earnings.”

Some analysts say the recent selling of Apple shares largely amounts to investors trying to lock in the 15 percent capital gains tax rate before it possibly goes up.

But Jeffrey Gundlach, CEO of money manager DoubleLine Capital, says the company has proven itself all too fallible, with problems such inaccurate maps on the iPhone 5.

"Investors had believed Apple would take over the world, management was flawless, its products were in infinite demand and competition couldn't make a dent," he tells USA Today. "People overbelieved in Apple."

DoubleLine has a short exposure to the company.

Wall Street Journal columnist Brett Arends raises the heretical notion that Microsoft might now be a better play than Apple.

Editor's Note: How You Lost $85,000 During the Last Decade. See the Numbers.

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Apple stock has dropped 25 percent since Sept. 21, closing Friday at $527.68. But Piper Jaffray analyst Gene Munster predicts the shares will come back with a vengeance — to $900.
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