Co-portfolio manager Channing Smith, of the Capital Advisors Growth Fund, says that Apple’s (NASDAQ:AAPL) stock will hit $600 by the end of the year, and offered some explanations that seem to have eluded many analysts who have been putting down their estimates for the company.
On CNBC‘s “Squawk On The Street,” Smith predicted that Apple is expected to have a weak quarter, the results of which have already been priced into the stock, which will put the focus on the second half of the year when Apple launches new products and puts some of its $140 billion of excess cash to work. Smith has recently increased his position in Apple.
“What we think is going to happen is Apple gets a pass on this quarter and investors are going to start looking towards the summer and the fall, when you start to see new product announcements. We’re going to see some excitement over what Apple is going to do something with its cash, that’s our expectation,” Smith said. “But we think the focus really goes into the second half of the year, a new product announcements, potential announcements with China Mobile and a lower priced iPhone.”