Jim Cramer has long been an Apple Inc. (NASDAQ: AAPL) bull. In fact, he’s been one of the most bullish voices on Steve Jobs regardless of all the potential pitfalls that the company has manged to cross. His thesis is that Apple is the best retailer out there. If you look through one of the few cautious statements from Best Buy Co. Inc. (NYSE: NYSE:) in this morning’s earnings report you will see that the company noted that Apple was one of the causes of some small market share losses that the company hopes to take back. Best Buy does retail Apple products, but the Best Buy floor is far less packed than the Apple stores.
On Tuesday night’s MAD MONEY on CNBC, Jim Cramer decided he wanted to be the highest ax as far as analyst earnings expectations. Cramer’s new target is $325.00 per share. With earnings consensus at $17.50 per share in earnings for the year, Cramer is at $22.00 per share in earnings for the year. His 14.8-times earnings estimate of the S&P 500 Index is how he came up with the $325.00 price target.
If you look at our own REAL TIME 500 of the real-time market caps of American titan companies, Apple is now the #2 stock by market cap behind #1 ExxonMobil Corp. (NYSE: XOM) by more than $60 billion in market cap, but it is worth almost $30 billion more than #3 Microsoft Corporation (NASDAQ: MSFT).
So now Cramer has the highest earnings estimate on the street. The problem is that he is far shy of being the highest price target. The mean target is $334+ and the highest price target is $400.00 on Apple. MarketWatch even has a video saying why Apple will be a $1,000 stock by the year 2015. The perma-bulls are hard to get rid of, and so far they have been right.
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JON C. OGG