Apple Inc. : Never back down!
By Lara Villeneuve
Entry price | Target | Stop-loss | Potential |
---|---|---|---|
$446.66 | $480 | $0 | +7.46% |
The market cap widely overtakes the 400 billion dollars. This progression gives it the first worldwide position (close to Exxon Mobil).
Apple ecosystem allows it to be a real trendsetter. The company became the first worldwide consumer of semiconductor before the automotive sector. The investments of the brand in innovation and distribution network is up for 10 years. Apple stores are designed in order to be a strike force with an innovative concept.
On a fundamental viewpoint, the stock show attractive valuation with a PER at 11.8x and 10.6x the estimates 2012 and 2013. Thomson-Reuters consensus brings out an average target price at 518 USD, representing potential gain of more than 20%.
Technically, the share has opened a third gap. It could be an exhausting gap. The short term trend started on the USD 380 support and the performance is establishing at 20%, leaving two others continuation gaps. The bullish trend allows an objective of 48 USD for the next months
However, we should be cautious on the next sessions, not to buy on the peaks of the stock. The USD 430 support can be use as good opportunity after a gap filling, for investors who want Apple in their portfolios.