Apple Inc. (NASDAQ:AAPL) has been looked favorably by investors before, but not nearly as much as Mr. Carl Icahn, the billionaire investor, has done recently in his letter to the company. Icahn set the price target of $203 for Apple shares which are currently trading at $107.1. On CNBC, Jim Cramer couldn’t keep a straight face when commenting on the ridiculous price target.
Cramer also mentioned the word steroids associated with the metrics that Carl Icahn mentioned in his letter. Even with the recent release of its new products, Apple Inc. (NASDAQ:AAPL) is certainly not on steroids. It is a growing concern, of course, but given the gigantic size of the company it will take a lot more than a few new products to create the growth that Carl Icahn envisions for Apple.
“[…] All I can say is, you know what, Tim Cook has done a great job. I don’t know, there is another 1499 companies in the S&P 500 that could use this kind of treatment. I say, let Tim run the company. Nice thoughts here period […],” said Jim.
Carl Icahn believes that Apple Inc. (NASDAQ:AAPL) is extremely undervalued and ‘another’ buyback program should be on its way to spur investment in the company. Another, because Apple is already on an aggressive share buyback program which was also initiated by their same investor.
Apple Inc. (NASDAQ:AAPL)’s current CEO, Tim Cook, is trying to bring in a new culture to the company. A new era of relative openness where shareholders are heard. Although, he will take the proposal to the board for discussion, but there is considerable doubt that they will take it seriously.
In light of Cramer’s comment, Icahn might be trying too hard to milk Apple Inc. (NASDAQ:AAPL)’s cash cow yet again. Icahn might lose his credibility if he continues to make ridiculous calls like this one.
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