In a note to clients — as reported by “Fortune” (http://macte.ch/M7940) — Piper Jaffray offered three reasons why he says Apple’s stock will soon go even higher:
° “Even if the multiple does not increase or goes down, we believe the stock will move higher based on positive earnings revisions. Apple currently trades at 10.8x our CY12 EPS of $30.78 including cash, 8.5x ex-cash. Assuming Apple does more than $48 in EPS in CY14 (25% EPS growth), at current levels the stock would trade at a 6.9x EPS including cash and 4.4x EPS excluding an estimated $120/share in cash. We believe a mid-teens multiple is warranted given EPS growth rates in the mid-to-high 20s over the next four years.”
° “We believe Apple’s entrance into a new product category, possibly televisions, will unlock new perceived value in the company, and thus the stock.”
° “We expect Apple to announce software features for iPhones, iPads and Macs at WWDC on 6/6 that could serve as a near-term catalyst, as expectations for the event are relatively low.”