Topeka reiterates buy on Apple today with that stunning $1111 price target fwiw!
...Topeka Capital Markets’s Brian White this morning reiterates a Buy rating on Apple (AAPL) shares and a $1,111 price target, writing that his “checks” are “pointing to an insatiable appetite in both Hong Kong and China for the iPad mini, leading to further supply constraints in recent days,” following the introduction of the smaller iPad on November 2nd in the special administrative region and on December 7th on the mainland
Look at it this way. Even if we assumed Apple doesn't grow earnings much again (which is ridiculous, it will), if we just take the past 12 months Pre-Tax Cash-Flow of about $55 billion. We then have Apple Management do an LBO, issue $1100 bonds for each share of stock, paying 4% interest (their credit quality is better than Deficits US Government), and interest paid on bonds is TAX DEDUCTIBLE to Apple vs. Divs. paid are Taxable to Apple (Divs. paid out of after-tax earns). The point is an $1100 per share LBO of Apple works, just from current cash-flow.