Apple Inc (NASDAQ AAPL) Rallying to $750, Cheapest Still

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By Athena Yenko | February 14, 2014 5:50 PM EST

The Oxen Group predicts that Apple Inc (NASDAQ AAPL) will continue to rally at $750. The group maintained their Buy rating in the stock as it was optimistic that product launchings of 2014 for new generations of iPhone, iPad, the iOS in the Car and the Apple TV will be the catalyst to Apple Inc's stock.

The group is persistent in giving Apple Inc (NASDAQ AAPL) a price tag of $750 from $700.

The latest development and partnership with the China Mobile is also to be accounted for the optimism about Apple Inc (NASDAQ AAPL). The China Mobile deal brings large implications to Apple Inc's market. Through the China deal, Apple Inc will surely target the emerging markets with success. China Mobile reported that 45 million people were using their phones. This figure comprises about 60 per cent of total iPhone users in China.

"The prospects from the deal are exciting. A lot of people have covered the deal, but we see the deal adding around 2.25 - 2.75 in EPS as the company will make around 12-15M sales to CHL users in 2014. With an ASP of $630 (but potentially lower in China), should add a solid amount to EPS. We are going a bit more conservative in our model due to initial sales have been a bit weaker than were expected, and it may take some time to get the sales moving. Right now, Apple is only in 16 cities, but that could reach 340 by the end of the year.

This development will be crucial to watch, and it needs to start to strengthen in the Q2-Q4 period. We will be updating throughout the year," The Oxen Group said through an article with Seeking Alpha.

Another factor that could rally Apple Inc stock to $750 is its successful performance at the Japanese smartphone market. Apple Inc now comprises one-third of the Japanese market, as reported by Japan Daily Press. Apple Inc now leads the Japan market share from its local competitors Fujitsu, Sharp and Sony Corporation.

"With Apple adding NTT DOCOMO in Japan for the first time in September 2013 and signing a deal with China Mobile during the quarter, we are already seeing an increased growth in the Japanese market and we should see the impact of the last deal in the first quarter of 2014," said Gartner principal research analyst Anshul Gupta.

Apple Inc (NASDAQ AAPL) had also increased its smartphone sales for the fourth quarter in the Middle East and Africa, Asia Pacific and Eastern Europe.

India had reported the highest growth in Apple sales by a single nation with 166.8 per cent increase.

Carl Icahn on Tuesday had just told FOX Business network's Neil Cavuto that he has no plans of selling Apple Inc stock because its price will surely reach the highest price tag that an investor can dream of. He said that with all the possible earnings that Apple Inc will deliver its shareholders, it still is the cheapest stock.

Meanwhile, Apple Inc. (NASDAQ AAPL) real time quote as published by NASDAQ.Com, Feb 14, is at $544.84 up by 1.51 per cent; with a previous close of $535.92; today's high at $544.84, today's low at 532.18; 52 weeks high at $575.1358, 52 weeks low at 385.10

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