Topeka Capital analyst Brian White defended his aggressive $888 price target on Apple (NASDAQ:AAPL) on Friday, telling Bloomberg TV that he saw several catalysts in the coming years for the company and that investors selling right now were being “shortsighted.”
“Apple is down right now, but certainly not out,” White said. “You take a look at the investor base right now. Growth investors see the growth slowing; they don’t want to be involved. They don’t think there’s a catalyst over the next two, three, four months. Value investors don’t see Apple tapping into its cash balance, so they’re staying away until they start to see that being distributed.”
However, according to White, there were several positive developments on their way, including a cash distribution by the company, the launch of an Apple television product, the bifurcation of the iPhone market, and a relationship with China Mobile (NYSE:CHL) and some of its 710 million subscribers.
“China has 1.1 billion mobile subscribers and Apple has a 5 percent to 6 percent market share there because they don’t have a lower-end [phone],” White said. “Apple coming out with a lower-price iPhone will be huge for China. It’s going to be huge for India where they have almost zero presence.”