Gene Munster: At $340 Apple Still Dirt Cheap

Apple is “just dirt cheap,” Piper Jaffray analyst Gene Munster said Wednesday. “This is a great time to own it.”

Munster dismissed issues surrounding the tech giant that include the delay in releasing the iPhone 5 and its iPad supply issues.

“People are going to buy their products anyway,” Munster said. “They’re the best products on the market, so these delays don’t impact demand.”

And the analyst, who reiterated his 'overweight' rating and $554 price target Wednesday morning, believes there is still room for growth. He anticipated 20 to 30 percent earnings growth in a couple years. He also said AAPL can earn $48 in 2014, which he calls a conservative number.

Not only is there room for expansion in the iPhone and iPad markets, Munster expects Apple to come out with a television within the next two to three years. And once people start talking about that new product category, it should send the multiple higher. But even if the multiple doesn’t move up, Munster said you can still own it for positive earnings revisions.

However, “Fast Money” trader Guy Adami feels rather differently. “Up until today,” he said, “I think you can say that the price action over the last month, month and a half has been disappointing.”

He believes AAPL will be tethered to moves in the S&P and should the market make a sharp move lower, Apple will make an even larger percentage decline.

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Trader disclosure: On May 25, 2011, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s “Fast Money” were owned by the “Fast Money” traders; Kinahan owns (AKS); Kinahan owns (CSCO), is short (CSCO) calls; Kinahan owns (F), is short (F) calls; Kinahan owns (GE) is short (GE) calls; Kinahan owns (MSFT) is short (MSFT) calls; Kinahan owns (NYT); Kinahan is short (SLV) through multiple options; Kinahan owns (YHOO); Adami owns (AGu); Adami owns (C); Adami owns (GS); Adami owns (INTC); Adami owns (MSFT); Adami owns (NUE); Adami owns (BTU); Terranova owns (XOM); Terranova owns (KSS); Terranova owns (CVI); Terranova owns (OXY); Terranova owns (TM); Terranova owns (BJ); Terranova owns (DIS); Terranova owns (PFE); Terranova owns (V); Terranova owns (HPQ); Terranova owns (FLX); Terranova owns (JPM); Terranova owns (MCD); Terranova owns (PEP); Terranova owns (VRTS); Terranova is short (DELL); Finerman and Finerman's firm own (AAPL);Finerman's Firm owns (BP); Finerman's Firm owns (CAT) calls; Finerman owns (C); Finerman's Firm owns (IBM); Finerman and Finerman's Firm own (JPM); Finerman's Firm owns (JPM) Leaps; Finerman and Finerman's Firm own (MSFT); Finerman's Firm owns (TGT); Finerman owns (UNG); Finerman owns (USO); Finerman's Firm is short (IWM), (SPY); Finerman's Firm owns S&P 500 Puts; Finerman's Firm owns Russell 2000 Puts

For Joe Terranova
Terranova is Chief Market Strategist of Virtus Investment Partners, LTD
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CNBC.com with wires.