Apple Inc. (NASDAQ:AAPL): The Device That Could Send Apple Shares To $800
Ian Wyatt: iTunes, iPhones and iPads have helped make Apple Inc. (NASDAQ:AAPL) the largest company in the world by market capitalization. Now something called the “iPanel” could send the tech stock to even greater heights.
Rumor has it that “iPanel” will be the name of a yet-to-be-announced device that will allow Apple to spread its wings into one key area where it has historically been absent: television. The iPanel will reportedly be the latest evolution in television, equipped with advanced features such as a computer, a media hub and a gaming center.
Essentially, the iPanel would be to the TV what the iPhone was to the cell phone – a substantial improvement and a product unto itself. Some have speculated that the device could be released as early as year’s end. [Related: How To Earn A 9.25% Gain In 30 Days While Waiting For Apple’s Dividend]
An iPanel would be a game-changer for a company that is already prospering like never before. After researching the potential impact of a so-called iPanel, Jefferies analyst Peter Misek has upped his price target for Apple to $800 per share – a 27% jump from its current price of $630 per share.
It’s easy to see why Misek feels this way. Television captures more consumer media time than any other medium. According to Nielsen Media Research, on average consumers spend 40% of their media time watching TV. Given that Apple is already a dominant force in the media world even without a television presence, an iPanel could greatly increase the company’s earnings potential. [Related: Apple Inc.’s Stock Is Entering A Euphoric “Bubble” Stage; A Bad Sign For The Markets?]
I realize it’s hard to believe that a company as big as Apple could grow much bigger. But just look at what the stock has done over the past four-and-a-half months. Since November 25, Apple has nearly doubled, gaining more than $200 billion in market cap and leapfrogging Exxon Mobil (NYSE:XOM) to become the largest publicly traded company in the world with a market cap that is fast approaching $600 billion.
In fact, nearly three years ago to the day, Apple’s stock was trading at $120 per share. It was just $242 per share as recently as April 2010, and $341 per share last April. The stock has defied gravity, rising to heights never before reached by a U.S. company. No matter how many times analysts have claimed that the stock is overpriced, Apple just keeps going higher, setting new records seemingly by the day. [Related: Equal Weighted ETFs To Counteract The Apple Inc. Effect]
New iPhones and iPads have been major catalysts behind the stock’s recent tear. The company sold 37 million iPhones and 15.43 million iPads in its most recent quarter, which at $13.1 billion in earnings was the second most profitable quarter by any company in history. And those were just the latest versions of devices that had already been in circulation for a couple of years.
The iPanel would be an entirely new concept. So it’s not unreasonable to think that if and when Apple does unveil the iPanel, it could add another 25% to the company’s stock price. [Related: Does Google’s Android Have Any Chance Against Apple Inc.’s iPhone?]
And Apple isn’t the only stock that could benefit from the device. The iPanel could be a major boost for one company in particular – a company that has partnered with Apple on the iPhone. It could supply a key part for the iPanel, which would provide a huge boost to the company’s bottom line … and its stock price. [Related: 7 Reasons Apple’s Stock Could Be The Short Of A Lifetime]
I reveal Apple’s silent partner in the latest edition of my $100K Portfolio newsletter. I’ve recently added this company’s stock to my $100K Portfolio, and am urging my subscribers to do the same. Click here to read more about it.
If the rumors of an Apple iPanel prove true, then this stock could be in for some Apple-like gains.
Related: PowerShares QQQ Trust Series 1 ETF (NASDAQ:QQQ).
Written By Ian Wyatt From Wyatt Investment Research *Full Disclosure: I currently own shares of Apple.
Wyatt Investment Research is led by founder Ian Wyatt, who serves as Publisher and Chief Investment Strategist. Our team also includes a group of talented research analysts and editors who aim to uncover great investments and present those investment ideas to our growing group of loyal subscribers. Ian Wyatt is an active investor, a well-regarded investment expert and an Internet entrepreneur. He is the Chief Investment Strategist at Wyatt Investment Research, and plays a leading role in each of the company’s investment newsletters and trading services. As a well-regarded market expert, Ian has written for Marketwatch, Zacks Investment Research, Seeking Alpha, Yahoo! Finance and The Burlington Free Press. He has been interviewed or quoted in articles in well-known publications including AOL Finance Blogging Stocks, Kiplinger’s Personal Finance Magazine, Barron Magazine, Barrons.com, Forbes.com, The Dick Davis Digest, The Dick Davis Income Digest, The Wall Street Transcript, TheStockAdvisors.com, Money Show Digest, The New Jersey Star Ledger, The Wisconsin State Journal and The Seattle Times.