Last week, we discussed Apple Inc. (NASDAQ:AAPL)‘s prospects in the eyes of Brian White, an analyst at Topeka Capital Markets. White currently holds a $1,111 price target on Apple, which is more than 50% higher than Wall Street’s average target of $740.
This morning, White was on CNBC‘s “Squawk Box” segment, discussing exactly why he’s so bullish on the tech giant. Here are the Apple Inc. (NASDAQ:AAPL) highlights:
“We still like Apple […] last night, the CEA had kind of a preview of what they think about for the new year in terms of growth […] Last year, they had forecasted growth of 4% in consumer electronics; it actually turned out to be down one (percent). For the coming year, they expect 4% growth […] really the two areas of growth are going to be tablets – 25% growth – and smartphones – 22%.”
White says that this “plays very well into Apple’s portfolio,” adding that “iPad Mini is a home run over in China.”
Additionally, White discussed “something smaller in the iPhone,” mentioning that:
“I think, you know, maybe it won’t be an iPhone Mini right out of the bat, but I think different form factor of iPhone we’ll see sometime in June […] I think you’ll see a smaller, and a bigger; so you might see a premium iPhone, and a cheaper iPhone. One of the thing you’ll see at CES this week, are as what we call, the embarrassing large smartphones […] I’m seeing this trend in Asia and I think that’s something Apple has to address.”
In addition to talking about the potential for multiple sizing options for Apple Inc. (NASDAQ:AAPL)’s next iPhone, White mentioned one other tech play.
Continue reading to see what it is..
White also discussed the prospects of Corning Incorporated (NYSE:GLW), a company that is suspected to provide Apple Inc. (NASDAQ:AAPL) with its Gorilla Glass 3 material.
Here’s what he had to say:
“Corning will probably be the most ubiquitous supplier at this trade show [CES]. So, when we look at our television, our notebook, our smart phone, our tablet, there’s two pieces of glass, and Corning has about 50% market share […] some of these products have a third layer of glass, called cover glass, that’s Corning’s Gorilla Glass. So, if you look at the iPad, the iPhone, any of the tablets, smartphones, most of that is Gorilla Glass to keep it from breaking.”
On the company’s investment prospects, we discussed the stock in depth last month, and here’s our synopsis of its valuation:
“Corning appears to be best-in-show. The glass technology company offers investors the top dividend of its closest competitors with a 2.7% yield, while also giving the best ‘growth at a reasonable price’ opportunity, trading at a 0.8 PEG. Corning also trades at 9x forward earnings and only 7x cash flow. We like the company’s profitability and balance sheet, and it has one of its industry’s highest gross profit margins (55%).”
Let us know your thoughts on Corning and Apple Inc. (NASDAQ:AAPL) in the comments section below, and for more related coverage, continue reading here:
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