AAPL: Brian White thinks it’s $888

Now (January 29th, 2013) he’s down from an earlier $1,111.

Topeka Securities’ Brian White, who has been tracking Apple Inc.(NASDAQ:AAPL) for a while now, thinks that Apple shares are a bargain at its current levels.

He is still bullish on the stock though he has cut his price target to $888 from his previous target of $1111 a share.

The reasons behind White’s reasoning are quite credible.

White thinks Apple will decide to give more of its massive $135 billion cash pile back to shareholders, in the form of increased dividends and share buybacks.

He is also expecting the company to double its dividend and buy back about $100 billion worth of stock, which would reduce its share base.

White also thinks Apple will release a bunch of new products over the next year: A new iPad, a bunch of new iPhones, and, eventually, an Apple TV.

He is betting on Apple signing an iPhone distribution deal with China Mobile, the world’s largest network operator with more than 700 million subscribers.

According to White the stock is very cheaply valued now. The stock currently trades at about 10-times trailing earnings, and if you factor out the cash, the multiple is even lower than that. When a stock’s multiple is that low, it doesn’t take much excitement to drive the price up.

Shares of AAPL are up 1.78% to $457.60 at afternoon session. The stock is still down about 10% since reporting quarterly numbers last week. Moreover, the stock has slumped about 35% from an all-time high of $715.


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