Icahn values Apple at more than $1 trillion

SAN FRANCISCO — What's cooler than being the first U.S. company to close at more than $700 billion in market value?

To be the first company to close at $1 trillion.

And that's Carl Icahn's prediction for Apple.

He thinks the technology giant is worth $216 a share, according to a letter the billionaire investor posted on his website.

Apple shares closed up 2% to $124.88.

Icahn is bullish on Apple and has amassed 53 million shares worth $6.5 billion. He says he has not sold a single share.

In the letter, Icahn predicts Apple will outshine his previous estimates. He has increased his forecast for earnings per share in 2015 to $9.70 from $9.60.

He also praised Apple CEO Tim Cook's remarks about cash distribution at the Goldman Sachs Technology and Internet Conference in San Francisco.

"By and large, my view is, for cash that we don't need – with some level of buffer – we want to give it back [to shareholders]. It may come across that we are, but we're not hoarders," Cook said on Tuesday.

"This position with respect to excess cash is great news for shareholders, and we look forward to the capital return program update in April, anticipating it will include a large increase to share repurchases," Icahn wrote.