AAPL - Gene Munster: 'AAPL should be a $250 stock'

Apple ( NASDAQ: AAPL ) shares are trading at what could be a bargain at current prices, Gene Munster, founder and Managing Partner at research-driven fund manager Loup says .

According to him, the Apple stock should be trading at prices nearly double where they are today after starting off 2023 with a sharp sell-off.

AAPL closed nearly 4% down on Tuesday as the company’s stock kicked off 2023 with fresh losses. AAPL ended the first trading day of the year at $125.07, its lowest price level in 18 months.

And as the tech giant’s stock sold off, the company’s market value sank by more than $85 billion to below $2 trillion. It was the first time since May 2022 that the iPhone maker’s market cap dropped below the $2 trillion market.

Apple’s consumers will come back

Amid risk markets weakness, AAPL declined more than the S&P 500 which closed 0.4% lower. The selling pressure for the tech stock intensified following reports the company had cut orders amid weak demand across its major markets.

But the Loup founder notes that Apple “ is debatably one of the world’s greatest companies ” and while his view isn’t investment advice, he still believes the stock should be at least at $250 by next year.

The analyst suggests AAPL is slightly undervalued at the moment, compared to the Price-to-Earnings (P/E) ratio of companies such as Coca Cola , Disney and Caterpillar. According to him, while the above examples trade at P/E multiple of 30, or 30x, Apple is trading at a 21 multiple.

About the company’s business and associated challenges, Munster told CNBC’s “ Squawk Box ”:

“Ultimately, consumers may delay for three, six, nine months, but they are going to come back. And they will be upgrading iPhones, Macs, and iPads and I think that’s something that investors can lean into.”

AAPL opened higher on Wednesday and was trading around $126.38 at 09:45 am ET.

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