He’s probably the most notorious Apple bull on the Street, but Gene Munster's upside expectations for Apple stock are eye-popping, even for him.
His price target is $607.
If you follow the tech sector at all – Munster’s Apple optimism comes as no surprise. You probably even expect his overweight rating – after all he often expounds on the company’s virtues and must have gadgets.
But $607? Considering the stock was slightly below $400 at the time of writing that’s a big move.
But Munster is resolute.
“I’m expecting shares to be driven by new product roll outs,” he says. “In 2012 there will be new hardware on iPads and iPhones and we believe a new Apple TV is coming late in the year.”
In fact, Munster thinks Apple TV alone will be very exciting if not a game changer – for both gadget gurus and the stock.
“We’re hearing it has DVD, Internet and gaming integrated into a seamless experience,” he says.
And equally important, Munster is expecting Apple to do something with all that cash they have on the balance sheet.
“By next year, Apple will have $120 in cash and they’ll have to do something,” he says. “I don’t think they’ll buy back but I do think they’ll issue a one time dividend.”
Add up all the catalysts and Munster says although his firm has 12 picks for 2012, of them all Apple is the best.
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Trader disclosure: On Dec 21, 2011, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s "Fast Money" were owned by the "Fast Money" traders; Grasso owns ; Grasso owns ASTM’ Grasso owns AVAV; Grasso owns BA; Grasso owns D; Grasso owns LIT; Grasso owns MHY; Grasso owns PFE; Grasso owns PRST; Grasso owns S; Grasso owns XLU; Adami owns (AGU); Adami owns (C); Adami owns (GS); Adami owns (INTC); Adami owns (MSFT); Adami owns (NUE); Adami owns (BTU); Stutland owns AAPL calls; Stutland owns COP; Stutland owns KO CALLS; Stutland owns YUM CALLS; Stutland owns MSFT CALLS; Stutland owns GE CALLS; Stutland owns BP CALLS; Stutland owns T; Stutland owns INTC CALLS; Stutland owns DIA PUTS; Stutland owns KMP PUTS; Stutland owns ABT; Stutland owns AMGN: Stutland owns CTRP: Stutland owns PG; Stutland owns QSII; Stutland owns CSCO CALLS; Stutland owns DBA CALLS; Stutland owns EWZ CALLS; Stutland owns IBM CALLS; Stutland owns LLY; Stutland owns SBUX; Stutland owns SLE CALLS; Stutland owns SPY PUTS; Stutland owns TLT PUTS; Stutland owns NLY PUTS; Stutland owns FXE PUTS; Stutland owns GOOG PUTS
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Stuart Frankel and its partners own CSCO
Stuart Frankel and its partners own CUBA
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Stutland Equities is a market maker holding hedged positions in VIX futures and options
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VFinance Investments-firm has positions in VIX and VIX options
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Piper Jaffray was making a market in the securities of Apple, Inc. at the time this research report was published. Piper Jaffray will buy and sell Apple, Inc. securities on a principal basis.
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