Analyst: Selling Apple is Shortsighted

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.”

The Topeka analyst also believed there was room for growth in developed markets for the company with an ultra high-end iPhone.

“On the ultra high end there is market for something more expensive that people in the U.S. or Europe will buy,” White said. “Something like an iPhone Pro, something that has the bells and whistles. The average person doesn’t want to pay for it, but there is a group out there, that’s big enough to make it work.”

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White also maintained that his prediction for the launch of a high-definition television product from Apple will come true and that a lot of people had been wrong in guessing a release date. “The Apple TV is going to come out in the next couple of years,” he said.

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