Apple Inc (AAPL)

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Gene Munster: At $340 Apple Still Dirt Cheap

Published: Wednesday, 25 May 2011 | 6:26 PM ET Text Size
By: Michelle Fox

Apple [AAPL 336.78 4.59 (+1.38%) ] is “just dirt cheap,” Piper Jaffray analyst Gene Munster said Wednesday. “This is a great time to own it.”

Munster dismissed issues surrounding the tech giant that include the delay in releasing the iPhone 5 and its iPad supply issues.

“People are going to buy their products anyway,” Munster said. “They’re the best products on the market, so these delays don’t impact demand.”

And the analyst, who reiterated his 'overweight' rating and $554 price target Wednesday morning, believes there is still room for growth. He anticipated 20 to 30 percent earnings growth in a couple years. He also said AAPL can earn $48 in 2014, which he calls a conservative number.

Not only is there room for expansion in the iPhone and iPad markets, Munster expects Apple to come out with a television within the next two to three years. And once people start talking about that new product category, it should send the multiple higher. But even if the multiple doesn’t move up, Munster said you can still own it for positive earnings revisions.

However, “Fast Money” trader Guy Adami feels rather differently. “Up until today,” he said, “I think you can say that the price action over the last month, month and a half has been disappointing.”

He believes AAPL will be tethered to moves in the S&P and should the market make a sharp move lower, Apple will make an even larger percentage decline.

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http://www.cnbc.com/id/43173091/