Gene Munster, managing director and senior research analyst at Piper Jaffray, continued to show great faith in Apple. In a recent interview with CNBC – Squawk on the Street, Munster still maintains his $900 price tag on Apple’s stock and is very confident of a full fledge TV.
When asked about his price target given the vast decline in Apple’s stock price at the moment, here is what he had to say:
[quote] When you look at 63%, that is a big gap between where we are at now and I realize that is a big gap. But if you look at the numbers and what is coming in 2013 I am not concerned about that price target. The reason is this: we are at 20%+ earnings growth for the next three years…and we have the new TV sometime later this year which should be positive too. You may think as 63% as a big number, but when you start stepping through the math it’s not that big of a jump.[/quote]
Here is Munster take on Apple TV:
[quote] We are pretty confident, and I would say if you were to put a percentage probability on it we would say there is an 85% chance it happens by the end of this year, and a 100% chance that it is going to be in the next two years.
..The content side is not a critical part in our opinion that seems to be where a lot of the Street is focused on. We think the content and the hope of unbundle channel is but we do think that just fixing the basic user interface is going to enough for Apple to be – have a successful television.[/quote]